Monah Lott Is an Agent for Mutual of Oregon Insurance

Monah Lott is an agent for Mutual of Oregon Insurance. Monah has been strictly prohibited from accepting premium payments from his clients; they are instead supposed to remit payments directly to the insurer. Mutual of Oregon sends Venus Planet a renewal notice with a premium invoice, and nowhere on the invoice does it tell her that she cannot remit payment to her agent. To save herself a postage stamp, she drops the payment off at Monah's office. Monah accepts the payment, and puts it in her own account. When Mutual of Oregon does not receive Venus's premium, it sends her a cancellation notice. Before receiving her cancellation notice, she suffers a loss and expects Mutual of Oregon to pay her claim. What will likely happen in this scenario?

A) Mutual of Oregon will likely have to pay the claim.
B) Mutual of Oregon will not have to pay the claim, but Monah Lott likely will.
C) Neither Mutual of Oregon, nor Monah Lott, will have to pay the claim.
D) The claim will be paid by the court, and it will then sue Mutual of Oregon.