Under the Law of Agency, a person or entity who acts on behalf of another is called what?

Prepare for the Louisiana Series 101 Life Insurance Exam with multiple choice questions and detailed explanations. Enhance your knowledge and succeed in your licensing exam!

Multiple Choice

Under the Law of Agency, a person or entity who acts on behalf of another is called what?

Explanation:
Under the Law of Agency, the person who acts on behalf of another is the agent. The agent operates with authority given by the principal and carries out tasks, negotiates, or makes decisions within that scope. The principal is the party who grants the authority to the agent and remains ultimately responsible for the agent’s actions. A client is simply the person receiving services, and a trustee is someone who holds property in trust—both are different roles. Therefore, the term that fits best for someone acting on behalf of another is agent.

Under the Law of Agency, the person who acts on behalf of another is the agent. The agent operates with authority given by the principal and carries out tasks, negotiates, or makes decisions within that scope. The principal is the party who grants the authority to the agent and remains ultimately responsible for the agent’s actions. A client is simply the person receiving services, and a trustee is someone who holds property in trust—both are different roles. Therefore, the term that fits best for someone acting on behalf of another is agent.

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