General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An applicant tells the life insurance agent, in confidence, about a serious health condition, and the agent records it in the application. The agent is the insurer's authorized representative. Legally, the insurer:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The agent acts for the insurer in the transaction, so facts the agent learns while soliciting or processing the application are imputed to the insurer — the insurer is charged with the agent's knowledge. This is why insurers cannot later claim ignorance of facts the agent knew, and why agents must record and forward application information accurately. The applicant's disclosure to the agent is disclosure to the insurer.
Why the other options are wrong
- B) Whether the agent is an employee or an appointed independent agent, the agent represents the insurer in the transaction and its knowledge is attributed to the insurer.
- C) Direct mailing is not required; disclosure to the insurer's authorized agent suffices.
- D) The insurer is charged with the agent's knowledge and must use it in underwriting.
Memory hook
The agent's ears are the insurer's ears. Tell the agent, and you have told the company.