Which of the following are types of agent authority?

• A. Express
• B. Implied
• C. Apparent
• D. All of the above

Answer: (D)

Types of agent authority include express, implied, and apparent. Express authority is the specific power written into the agency agreement or granted in clear instructions, such as the agent’s authority to solicit applications, collect premiums, or bind coverage within set limits. Implied authority is not written out but is inferred from the agent’s duties and the reasonable needs of the relationship—things that are necessary to perform the job, like handling endorsements or completing routine tasks that support issuing a policy. Apparent authority arises when the insurer’s actions or representations lead a third party to reasonably believe the agent has authority to act in a certain way; even if the agent lacks actual authority, the insurer may be bound by the agent’s apparent authority if the customer reasonably relies on it. Because all three forms exist and can govern an agent’s actions, the best choice is that all of the above are types of agent authority.