A producer has no written power to bind a certain commercial line, but has bound it for years while the insurer accepted the business and paid commissions. A court would most likely find:
Explanation
Apparent authority arises when the insurer's conduct leads a reasonable applicant to believe the producer holds powers the written contract never granted, and the insurer is bound by acts within that appearance. Express authority is what the agency agreement states in words, and implied authority is what is incidental to carrying out the express grant, such as ordering supplies or paying office staff.
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