Which type of principal is known to the third party dealing with the agent but whose identity is not known?

Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

Which type of principal is known to the third party dealing with the agent but whose identity is not known?

Explanation:
In agency law, how much a third party knows about the principal depends on disclosure level. If the third party knows there is a principal but does not know the principal’s identity, that is a partially disclosed principal. That description matches the scenario because the existence of a principal is known, but the name or identity is not. This is the best answer because it precisely captures the situation: the third party is dealing with the agent on behalf of a principal, yet the principal’s identity is not revealed. The other options don’t fit: a disclosed principal is one whose identity is known to the third party, and an employee or independent contractor is not a principal in that sense.

In agency law, how much a third party knows about the principal depends on disclosure level. If the third party knows there is a principal but does not know the principal’s identity, that is a partially disclosed principal. That description matches the scenario because the existence of a principal is known, but the name or identity is not.

This is the best answer because it precisely captures the situation: the third party is dealing with the agent on behalf of a principal, yet the principal’s identity is not revealed. The other options don’t fit: a disclosed principal is one whose identity is known to the third party, and an employee or independent contractor is not a principal in that sense.

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