What is meant by "express authority" in an insurance context?

Express authority in the context of insurance refers specifically to the powers and responsibilities that are explicitly outlined in a producer's contract with the insurer. This type of authority is formally granted, typically through written documentation, which clearly defines what actions the producer is authorized to take on behalf of the insurer. This can include binding coverage, issuing policies, or handling claims within the limits set forth in the contract.

In contrast, verbal authority during meetings lacks the same degree of legal clarity and specificity as written authority. Authority inferred from actions over time involves implied authority, which can be less reliable and more subject to interpretation, as it derives from the conduct and practices established historically rather than from explicit agreement. Authority assumed by clients is a concept that falls under the idea of perceived authority or the assumptions made by clients rather than being directly related to formalized power granted by the insurer. Thus, the definition of express authority as articulated in the producer's contract is distinct and crucial for understanding the formal relationship between the insurer and the producer.