Which type of authority allows an agent to perform actions that are necessary to conduct business, even if not written?

Implied authority refers to the power an insurance agent has to perform acts that are not explicitly outlined in their formal contract but are necessary for the completion of their responsibilities. This authority arises from the nature of the agent's position and the expectations of the role they play in the business.

For example, an insurance agent may have the implied authority to take steps to secure a policy or to communicate with clients regarding their coverage, even if those specific actions are not detailed in a written agreement. This authority stems from the requirement that agents must carry out the business of insurance effectively and efficiently.

Implied authority is essential in ensuring that agents can act swiftly in situations that require immediate attention, such as client inquiries or policy renewals, which enhances customer service and operational effectiveness.

In contrast, express authority is defined by explicit written agreements and contracts, fiduciary authority relates to the responsibility an agent has to act in the best interest of the client, while apparent authority involves the perception of authority that others might have regarding the agent's actions, based on the principal’s (insurer's) representations.