What type of authority can an insurance agent possess?

An insurance agent can possess three types of authority: Express, Implied, and Apparent.

Express authority is the explicit power granted to the agent by the insurer, typically outlined in the agency agreement. This could include specific duties or powers the agent has, such as the ability to bind coverage or negotiate policy terms on behalf of the insurer.

Implied authority goes a step further, encompassing the powers that are not explicitly stated in the contract but are necessary for the agent to carry out their duties effectively. For instance, if an agent has express authority to sell policies, they implicitly have the authority to collect premiums, as this is a natural part of selling insurance.

Apparent authority refers to the perception created in the minds of third parties regarding the agent's ability to act on behalf of the insurer. This can occur even if the agent does not have actual authority, as it is based on the representations made by the insurer. If the insurer has allowed the agent to act in a way that leads clients to believe they have authority, the insurer may be bound by the agent’s actions.

Other options like Delegated Authority, Limited or Restricted Authority, or Conditional Authority have specific meanings or contexts, but they do not encompass the comprehensive scope of authority types