A life insurance company provides a written contract to a new agent, specifically granting them the power to solicit business and collect initial premium payments. The contract makes no direct mention of the agent's right to contact local clinics to schedule mandatory medical examinations for applicants. Nevertheless, the agent regularly books these appointments to facilitate the underwriting process. Which of the following legal concepts gives the agent the legitimate power to schedule these medical exams?
- Implied authority, because the action is a necessary and customary step required to carry out the expressly granted duties of soliciting applications.Cevap
- BApparent authority, because the applicants reasonably assume the agent has the power to manage their medical appointments based on the agent's behavior.
- CExpress authority, because all administrative tasks tied to a successful insurance sale are legally considered to be written into the agreement.
- DWaiver, because the insurance company voluntarily relinquished its own right to schedule the exams by accepting the applications the agent submitted.
Cevap
The correct answer is implied authority, as this grants the agent the unwritten power to perform customary tasks necessary to execute their explicit contractual duties.
The correct answer accurately identifies that implied authority bridges the gap between the specific wording of a contract and the practical reality of doing business. Since an agent cannot solicit and submit life insurance without the required medical exams, the power to schedule them is implied by the express authority to solicit the business.
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Producer Authority and Agency Law