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An insurance agent, Nica Morales, of Pacifica Assurance Corp. in Davao negotiates fire insurance coverage for Aurora Manufacturing Co.’s warehouse. Morales tells Aurora that Pacifica will bind a fire policy of up to PHP 9,000,000 and issues a binder stating the coverage, perils, and premium. The next day, Pacifica issues a formal policy for PHP 6,000,000 with similar perils but different terms. Pacifica later repudiates Morales’ actions, claiming Morales had no authority to bind coverage or to issue a binder.   (a)Identify the central doctrine governing whether Pacifica is bound by Morales’ binder. (b)Distinguish actual authority, apparent authority, and agency by estoppel as they apply to Morales’ binder. (c)Apply to the facts: Is Pacifica bound to honor the binder and the policy? Explain your answer with reference to the Insurance Code (PD 612, as amended by RA 10607).