Apparent agency

{
  "id": "MLC-T-INS-000438",
  "term": "Apparent agency",
  "field": "Insurance and risk management",
  "definition": "A legal doctrine where a principal is bound by an agent's actions if a third party reasonably believes the agent has authority to act on behalf of the principal, even if no actual authority exists. In insurance, this can arise if an insurer's actions lead a policyholder to believe an agent has the authority to bind coverage or settle a claim. The insurer may be held responsible for the agent's actions due to this perceived authority.",
  "url": "https://mlchart.com/terminology/insurance/apparent-agency/"
}