Which type of authority covers powers or duties not stated in the agency agreement but necessary to perform the job?

• A. Expressed Authority
• B. Implied Authority
• C. Apparent Authority
• D. Legal Elements of An Insurance Contract

Answer: (B)

Implied Authority is the authority an agent has that isn’t written in the agency agreement but is necessary to perform the job. It comes from the agent’s role and the ordinary expectations of the insurer, allowing them to take standard actions necessary to carry out duties. This can include binding coverage within the insurer’s usual guidelines, issuing endorsements using standard forms, or collecting premiums when those tasks are part of normal servicing. Expressed authority would be those powers explicitly stated in the contract or appointment. Apparent authority deals with what a third party reasonably believes the agent can do based on the principal’s conduct or representations, which can create liability even if the agent lacks actual authority. The legal elements of an insurance contract are about the agreement itself, not the scope of the agent’s authority.