Which term describes an agent that transacts all of a principal's business of a particular kind or in a particular place?

Which term describes an agent that transacts all of a principal's business of a particular kind or in a particular place?

• A. Soliciting agent
• B. Special agent
• C. General agent
• D. Broker

Answer: (C)

In agency law, the scope of authority defines the role. A general agent has authority to transact all of the principal’s business of a particular kind or in a specific place. This broad mandate means the agent can handle the ongoing affairs within that area or line of business for the principal, not just a single task. That’s why this term fits the description exactly. A special agent, in contrast, is limited to a specific act or transaction. A soliciting agent mainly invites applications and typically cannot bind the principal. A broker serves as an intermediary who arranges dealings between the insured and the insurer and isn’t the principal’s general representative for all such business.

In agency law, the scope of authority defines the role. A general agent has authority to transact all of the principal’s business of a particular kind or in a specific place. This broad mandate means the agent can handle the ongoing affairs within that area or line of business for the principal, not just a single task. That’s why this term fits the description exactly.

A special agent, in contrast, is limited to a specific act or transaction. A soliciting agent mainly invites applications and typically cannot bind the principal. A broker serves as an intermediary who arranges dealings between the insured and the insurer and isn’t the principal’s general representative for all such business.