Insolvency automatically results in termination of an agency relationship.

Name: Insolvency automatically results in termination of an agency relationship.
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Question

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If the principal or agent files a bankruptcy petition,the agency relationship is generally no longer in existence.Insolvency,which is defined as the inability to pay debts or the condition of liabilities outweighing assets,does not necessarily result in the termination of an agency relationship.

Insolvency Automatically Results in Termination of an Agency Relationship