An agent may be personally liable for actions that are what?

An agent may be personally liable for actions that are not part of the agency or agent contract because these actions can exceed the authority granted to them. When an agent operates outside the parameters defined by their agency agreement or the specific instructions given by the insurer, they assume personal liability for those actions. This is essential not only for the protection of the insurance company but also to ensure that the agent’s conduct aligns with regulatory standards and ethical practices within the insurance industry.

In contrast, actions that are approved by the agency, explained in the agency contract, or authorized by the insurer typically fall within the scope of the agent's responsibilities and authority. Therefore, if an agent acts within these boundaries, liability would primarily rest with the agency or insurer rather than the agent personally. Understanding the limits of authority in an agency relationship is critical in determining personal liability for actions taken by the agent.