Legal Effect of Agents' Opinions on the Meaning of Provisions in the Contract
In the course of their daily business. agents are frequently asked to express
opinions on the meaning of policy provisions, and it is of the utmost importance
that definite relations should exist between the company and its agents
as regards the expression of such opinions. What, then, is the legal effect
of the agent's opinion? The general rule is that no legal effect can be
given to such opinions in case, for example, they result in misleading the
insured as to the meaning of any policy provision. This view is based on
the theory that an agent's opinion as to the meaning of any section of the
contract does not create new or change old obligations.
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