Cascioli v. Central Mutual Insurance

The issues presented in this case, as posited by appellants, relate to the scope of an insurance agent’s apparent authority to bind an insurer pursuant to R.C. 3905.01.2

The rule of apparent authority, as set forth in 1 Restatement of the Law of Agency 2d (1958) 375, Section 159, is as follows:

“A disclosed or partially disclosed principal is subject to liability upon contracts made by an agent acting within his apparent authority if made in proper form and with the understanding that the apparent principal is a party. The rules as to the liability of a principal for authorized acts, are…