Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does not include water damage caused by hurricane flooding. In this scenario,

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Both the insurance company and the salesman can be held accountable for fraudulent sales as Ryan failed to disclose an important aspect of the policy, and the company instructed him to do so. The buyer cannot be expected to read every detail of the policy, and it is the responsibility of the salesperson and the company to provide accurate information about the product they are selling. The fact that water damage from flooding is not covered is a material fact that should have been disclosed to the buyer. Therefore, both the salesman and the company can be held liable for the fraudulent sale.

Ryan, an Insurance Salesperson, Sells an Insurance Policy Covering Hurricane