Agent

The terms of a policy, the benefits promised under it, or future dividends payable — Section 780 prohibits insurers, officers, agents, brokers, and solicitors from causing or permitting a statement — known or that should have been known to be a misrepresentation — about the terms of a policy, the benefits or privileges promised under it, or future dividends payable. This protects consumers from exaggerated sales claims. Misrepresenting policy benefits during a sales presentation violates this section even if no sale is completed.

CA-specific example

The insurer (the principal), and the insurer is generally responsible for the agent's authorized acts — An agent is an authorized representative of the insurer — its principal — and acts on the insurer's behalf in soliciting and servicing business. Under agency law, the insurer is generally bound by acts the agent performs within the scope of express, implied, or apparent authority. This is why an agent's representations about coverage can bind the insurer, and why agents must carefully stay within their authority.

National insurance concept