What is express authority in the context of insurance?

In the context of insurance, express authority refers specifically to the clear and unmistakable powers granted to an insurance producer through written communication. This authority is typically outlined in a producer agreement or contract, detailing the specific actions, decisions, or representations that the producer is authorized to undertake on behalf of the insurer.

This written authority is crucial as it defines the legal boundaries within which the producer operates, ensuring that both the producer and the insurer understand the scope of the producer's powers. It stands in contrast to implied authority, which may arise from the producer's actions or the responsibilities typically associated with their role, but is not formally documented. Express authority provides clarity and protection in transactions by setting explicit expectations and responsibilities for all parties involved.