Question

Under the Law of Agency, the principal is considered to be ________.

1) the producer
2) the insurer
3) the plan administrator
4) the insured

Answer 1

Under the Law of Agency, the principal is considered to be the producer.

Step-by-step explanation:

Under the Law of Agency, the principal is considered to be the producer. In the context of the example provided by Hal Luftig, the producer is the owner of a sports team, and everything flows up to them as the owner.

Therefore, in the Law of Agency, the principal is the person who has the authority to hire agents and delegate tasks.