Express authority is defined as which of the following?

• A. Powers given to the agent as part of the agency agreement
• B. Powers NOT given by the agency agreement, but necessary to complete the functions allowed in the agency agreement
• C. Powers NOT given by the agency agreement, but that a reasonable person would presume the agent has
• D. Powers given to the agent by court order

Answer: (A)

Express authority is the powers the insurer explicitly grants the agent in the agency agreement. These are the specific actions the agent is authorized to perform on the insurer’s behalf, as stated in the contract—such as soliciting applications, collecting premiums, and issuing policies. This is distinct from implied authority, which covers duties that aren’t written out but are reasonably necessary to carry out the expressed duties (like taking steps needed to issue a policy). It also differs from apparent authority, which occurs when the principal’s conduct leads others to believe the agent has authority, even if the agent isn’t actually empowered for that task. Powers granted by a court order are outside the agency agreement entirely, so they aren’t express authority.