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Difficulty: EasyProducer Authority and Agency Law

Marcus signs a formal contract to represent Apex Insurance. The written agreement explicitly lists his authorized duties, including the specific right to solicit policies and collect initial premium payments. Which type of authority is directly established by the terms written in this contract?

  1. Express authorityAnswer
  2. B
    Implied authority
  3. C
    Apparent authority
  4. D
    Estoppel authority

Answer

Express authority
Express authority is the specific power explicitly granted to a producer in their written agency contract with the insurer. Because the scenario highlights duties that are formally written in the agreement, it directly illustrates express authority.

Step-by-Step Solution

1
Analyze the scenario to identify the source of the producer's power.
The producer is acting based on duties explicitly listed in a written agreement.
Identifying how the authority was granted is necessary to classify it.
2
Match the source of power to the correct legal definition.
Authority that is formally written into a contract is defined as express authority.
Agency law categorizes authority based on whether it is written, assumed, or perceived.

Key Concept

Express Authority
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Topics

Producer Authority and Agency Law

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