Which of the following entities can legally bind coverage?
A. Insurer
B. The insured
C. Agent
D. Federal Insurance Board
Answer (2)
The entity that can legally bind coverage in an insurance policy is the agent, who acts on behalf of the insurer. Insurers create the policy, while the insured accepts the terms but does not have binding authority. The Federal Insurance Board does not directly bind coverage. ;
The agent is the entity that can legally bind coverage in an insurance policy on behalf of the insurer. The insured does not have this authority, while the Federal Insurance Board functions as a regulatory body rather than a binding one. Therefore, the correct answer is option C: Agent.
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