Implied authority

Authority granted to an agent, even though not stated, that lets the agent perform tasks usual and necessary to exercise the agent’s express authority. See Actual authority and Express authority.
***
Authority of an agent that the public may reasonably believe the agent to have. If the authority to collect and remit premiums is not expressly granted in the agency contract, but the agent does so on a regular basis and the insurer accepts, the agent has implied authority to do so.
***
MEDICAL,USA: Permission that an individual or company intends an insurance agent to have and that occurs incidentally from an express grant of authority.
***
The authority that a member of the public may believe an agent to have. For example, if an agent is repeatedly seen signing contracts on behalf of the agency, though he or she may not have authority to do so, it is reasonable for the public to believe the agent has that authority.

Leave a Reply

Your email address will not be published. Required fields are marked *