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

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

Answer: (D)

Express authority is authority granted by the principal to the agent in writing, specifying exactly what the agent may do on the principal’s behalf. In insurance practice this comes from an agency agreement or appointment letter that clearly authorizes the agent to perform specific actions, such as issuing policies, collecting premiums, or binding coverage within stated limits. This explicit, documented permission distinguishes it from implied authority, which arises from the nature of the relationship and duties rather than a written grant; from apparent authority, which exists when a third party reasonably believes the agent has authority based on the principal’s representations; and from actual authority, the broader power to act for the principal that includes both express and implied authority.