General Insurance PrinciplesQuestion 610 of 716
Implied authority of a producer is:
a.Authority not written but reasonably assumed to be necessary to carry out the producer's express authority
b.Authority to make the final underwriting decision on each application and to bind the insurer to any risk the producer chooses
c.Authority explicitly spelled out in the agency agreement
d.Authority the general public simply assumes the producer has
Explanation
Implied authority is what the producer needs to accomplish tasks the express authority permits, even if not stated. Written authority is express, public assumption is apparent authority, and underwriting is not delegated to producers.
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Related questions on this topic
- Describing insurance as an aleatory contract means that:
- Insurance is called a unilateral contract because:
- Insurance is a conditional contract, meaning that:
- Apparent authority is the authority an agent appears to have because:
- In the legal relationship of agency, the insurance producer normally represents:
- A producer's duty to recommend coverage that genuinely fits the client's needs and financial circumstances is the principle of:
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)