Denny Crane was an agent for Mutual of Florida Insurance, but his agency contract was recently revoked. One of his clients, Shirley Schmidt, has not yet been informed that he no longer represents Mutual of Florida
She drops by his office to deliver a premium payment, which he accepts and deposits into his own account. When Mutual of Florida does not receive Shirley Schmidt's premium, it sends her a cancellation notice. Before receiving her cancellation notice, she suffers a loss and expects Mutual of Florida to pay her claim. What will likely happen in this scenario?
A) Mutual of Florida will likely have to pay the claim.
B) Mutual of Florida will not have to pay the claim, but Denny Crane likely will.
C) Neither Mutual of Florida, nor Denny Crane, will have to pay the claim.
D) The claim will be paid by the court, and it will then sue Mutual of Florida.
A
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