What right does an agent have regarding their principal?

Study for the CII Insurance Law (M05) exam. Enhance your preparation with quizzes featuring multiple choice questions, detailed hints, and explanations. Get ready to ace your test!

An agent has the right to have reasonable expenses reimbursed as part of their responsibilities in representing the principal. In an agency relationship, agents typically incur costs while carrying out their duties, such as travel, communication, and other necessary expenditures related to fulfilling their role. The principle behind this right stems from the understanding that the agent acts on behalf of the principal. Therefore, it is considered fair for the principal to cover reasonable expenses incurred by the agent while performing their obligations. This creates a clear incentive for agents to act diligently and effectively on behalf of the principal, knowing that their out-of-pocket costs will not negatively affect their financial situation.

The other options do not accurately reflect the established rights and responsibilities in agency law. For instance, agents do not have the unilateral right to make decisions that affect the principal's interests without consent, nor do they automatically earn commissions on every sale without specific agreement terms. Additionally, while an agent might have the right to terminate an agency agreement under certain circumstances, this right is not automatically granted and usually comes with specific conditions or mutual consent.

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