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Difficulty: EasyAgent Authority and Agency Law

During her onboarding process, Elena receives a formal, written agreement from Zenith National Insurance. The document distinctly outlines that she has the power to collect initial premiums on behalf of the insurer. What legal term describes the type of authority explicitly granted to Elena in this written document?

  1. A
    Implied authority
  2. B
    Apparent authority
  3. Express authorityAnswer
  4. D
    Fiduciary authority

Answer

Express authority
The correct answer identifies the authority that is formally documented and specifically detailed in the agency contract. When an insurer writes down the exact powers granted to a producer, it is legally defined as express authority.

Step-by-Step Solution

1
Analyze the source of the authority described in the scenario
The authority is granted through a formal, written agreement.
Identifying how the authority is communicated determines its legal classification.
2
Match the source to the correct legal definition
Authority explicitly written in a contract is known as express authority.
Agency law categorizes authority based on how it is established between the principal and agent.

Key Concept

Express Authority
Estimated Time:45s
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Topics

Agent Authority and Agency Law

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