Fiduciary Agent is defined as which kind of relationship?

• A. An agent for a principal with the legal or special relationship of trust, confidence, or responsibility between two or more parties.
• B. An agent who is negligent by default.
• C. A salesperson acting without authorization.
• D. An insured party seeking damages.

Answer: (A)

A fiduciary relationship exists when one party is entrusted to act on another’s behalf with a bond of trust, loyalty, and responsibility. In this arrangement, the agent has a legal or special obligation to protect the principal’s interests, disclose relevant information, and avoid conflicts that could harm the principal. That’s exactly what the definition describes: an agent for a principal with the legal or special relationship of trust, confidence, or responsibility between two or more parties.

The other options describe situations that aren’t about a fiduciary duty. Negligence by default is about failing to meet a standard of care, not a formal trust relationship. A salesperson acting without authorization is acting outside their authorized role, and an insured party seeking damages describes a claimant rather than a fiduciary arrangement.