In what scenario does an agent have expressed authority?

An agent has expressed authority when they are following direct instructions from an insurer. This form of authority is explicitly granted through verbal or written instructions, contracts, or agreements made between the agent and the insurer. This means the agent is authorized to carry out specific tasks or roles on behalf of the insurer, and their actions within the scope of that authority are legally binding.

Expressed authority is essential in insurance because it ensures that agents operate within the confines of their granted powers, providing clarity in the relationships among agents, insurers, and clients. The tasks an agent can perform—such as binding coverage, negotiating terms, or processing claims—are defined by these direct instructions. When an agent adheres strictly to the expressed authority given to them, they are acting in accordance with the intentions and policies set by the insurer, which reinforces the legitimacy of their actions in the eyes of clients and regulatory bodies alike.