Which term describes authority granted to an agent by the principal in writing?

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Which term describes authority granted to an agent by the principal in writing?

Explanation:
Express authority is authority granted to an agent by the principal in writing. This is the explicit, written permission that lays out exactly what the agent can do on behalf of the principal, often documented in an agency contract, power of attorney, or similar written instrument. It defines the scope of the agent’s power clearly, such as the ability to bind the principal to contracts or to perform specific acts within agreed limits. This written grant is what distinguishes express authority from other forms: implied authority arises from the agent’s duties and typical business practices; apparent authority depends on how third parties perceive the agent’s power based on the principal’s representations; and actual authority covers both express and implied authority. Since the question specifies a written grant, express authority is the correct concept.

Express authority is authority granted to an agent by the principal in writing. This is the explicit, written permission that lays out exactly what the agent can do on behalf of the principal, often documented in an agency contract, power of attorney, or similar written instrument. It defines the scope of the agent’s power clearly, such as the ability to bind the principal to contracts or to perform specific acts within agreed limits. This written grant is what distinguishes express authority from other forms: implied authority arises from the agent’s duties and typical business practices; apparent authority depends on how third parties perceive the agent’s power based on the principal’s representations; and actual authority covers both express and implied authority. Since the question specifies a written grant, express authority is the correct concept.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy