An agent regularly allows insured to pay premiums a few days late. What legal doctrine would be applicable if the insurer tries to deny a claim due to the late payment?

The correct answer is related to the principle of estoppel, which is a legal doctrine that prevents a party from asserting a claim or right that contradicts their previous behavior or statements. In the scenario presented, the agent's habitual acceptance of late premium payments can create an expectation for the insured that such delays will be overlooked.

If the insurer tries to deny a claim based on a late payment after previously allowing such delays, estoppel could come into play. The insurer may be “estopped” from denying the claim because their consistent acceptance of late payments implies a form of agreement or understanding that the timing of the payment would not affect the validity of the insurance coverage.

This doctrine protects insured individuals by ensuring that they can rely on the actions and representations of the insurer or their agents. If the insurer has not acted to clarify their policies regarding late payments and has allowed the behavior to continue, they may be bound by that conduct in terms of the insured's expectations regarding their coverage.