Why might the principle$-$agent relationship be considered problematic for insurance companies?

Select all answers that apply.

Insurers are required by state laws to sell insurance through agents.

Insurers have to pay agents a percentage of premiums they collect.

Agents may be the only company representatives a policyholder interacts wifthy.

Agents may provide coverage for risks that the insurer prohibits, waiving the principal's right of refusal later.

Agents control access to insureds and mediate all communication between the insurer and the policyholder

Agents can legally bind an insurer to a contract.