Methvin was an agent for North American Specialty Insurance Company (NAS), which was engaged in the business of underwriting performance or construction bonds. As part of the agency agreement, Methvin was to seek prior approval from NAS before writing any bonds. During the course of the agency relationship, Methvin issued numerous unauthorized performance bonds. After learning about the unauthorized bonds, NAS accepted and retained payment of the premiums on all the unauthorized bonds issued by Methvin. Thereafter, 12 of the unauthorized bonds resulted in defaults, causing significant losses when NAS was forced to pay claims on them. NAS now argues that Methvin, not it, is legally responsible to pay the claims on the defaulted bonds because Methvin acted without authority. Is NAS legally liable to the pay the claims on the defaulted bonds? Explain.