Mark recently signed an agency agreement with Horizon Mutual. The written contract explicitly states that he is authorized to bind property insurance policies up to a limit of $500,000. Under agency law, which of the following best describes this specific type of authority?
- Express authorityAnswer
- BImplied authority
- CApparent authority
- DWaiver and estoppel
Answer
Express authority
The correct answer is express authority because it refers directly to the powers explicitly detailed and granted in the written agency contract between the producer and the insurer.
Step-by-Step Solution
Key Concept
Express authority is the specific power explicitly granted to an agent in a written or oral agency contract.