The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority?

• A. Express
• B. Implied
• C. Apparent
• D. Actual

Answer: (B)

Authority not written in the contract is implied authority. This comes from the producer’s role and the reasonable expectations of what’s needed to represent and carry out the insurer’s business, even if a specific power isn’t spelled out. Express authority would be powers clearly granted in writing, so that doesn’t apply here. Apparent authority differs because it’s based on how others perceive the agent’s authority from the principal’s actions, not from what’s contractually granted. Actual authority includes both express and implied authority, but the question’s focus is on the power not addressed in the contract, which is the implied portion.