When Jack, an intermediary, wrongly explains an insurance policy, who is ultimately liable for his actions?

The correct answer highlights a crucial aspect of liability in the context of insurance intermediaries. When Jack, as an intermediary, provides a misleading explanation of an insurance policy, the liability typically falls on the insurance provider, in this case, ASR. This principle is rooted in the understanding that intermediaries operate in a representative capacity for the insurance company. Therefore, any misrepresentation made by the intermediary can be attributed to the insurer, who is responsible for the actions and communications of their agents or intermediaries.

In many legal frameworks, insurance intermediaries are seen as extensions of the insurer. Consequently, if an intermediary gives incorrect information about coverage, terms, or benefits, the insurer can be held accountable for the misunderstanding created, as the client might reasonably rely on the intermediary's explanation when making decisions about their insurance needs. This situation underscores the importance for insurance companies to provide adequate training and oversight to their intermediaries, ensuring they deliver accurate information.

The other individuals mentioned do not bear liability for Jack's wrongful explanation in the context of standard practices in insurance law, as the insurer (ASR) retains responsibility for the accuracy and clarity of the information conveyed through their representatives.