An agent may be personally liable if he or she engages in acts that?

An agent may be personally liable for acts that are not part of the agency or agent contract because these actions can fall outside the scope of their authority granted by the insurer. When an agent acts outside of the terms and conditions of the agency agreement, they could be held personally responsible for any resulting damages or legal issues. This is because the agent is expected to operate within the boundaries set by the contract and state laws. Taking actions that are unauthorized or do not align with their professional obligations can lead to liability if those actions cause harm to clients or violate regulatory requirements.

In contrast, actions that are part of the agency contract or that have been approved by the insurer would typically be considered within the agent's duties and responsibilities, thereby reducing the risk of personal liability. Compliance with state regulations also protects the agent from liability as it confines their actions to those that are legally sanctioned.