The powers a producer is specifically granted in the written agency agreement with the insurer are called:
Explanation
Express authority is the authority explicitly spelled out in the agency contract, such as the power to solicit applications and collect initial premiums. Implied authority is not written but is assumed to accompany express authority so the producer can do the job. Apparent authority is based on the impression created in the eyes of a third party. 'Assumed authority' is not a recognized category. Together, express and implied authority make up a producer's actual authority.
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Related questions on this topic
- The intentional withholding of a known material fact during the application process is called:
- A misrepresentation on an application generally allows an insurer to void the policy only when the misstatement was:
- A producer exceeds the powers actually granted by the insurer, but a reasonable applicant believes the producer is acting for the insurer. The producer is exercising:
- Persuading a policyowner to drop an existing policy and replace it by using misleading or incomplete comparisons is the unfair trade practice known as:
- Offering a prospective buyer part of the commission or another inducement not specified in the policy in order to make a sale is called:
- A producer who collects and holds premium money on behalf of the insurer occupies a position described as:
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