Which form of agency authority is clearly granted by the insurer in writing or by contract?

• A. Apparent authority
• B. Express authority
• C. Ex officio authority
• D. Implied authority

Answer: (B)

Express authority is the form of agency authority that is clearly granted by the insurer in writing or by contract. This means the insurer spells out, in an appointment or agency agreement, exactly what the agent is allowed to do—such as soliciting applications, collecting premiums, or binding policies within specified limits. Because this authorization is written and defined in the contract, it creates a definite scope of power and the insurer is bound by the agent’s actions that stay within those stated terms.

Understanding the other forms helps clarify why express authority fits the question. Apparent authority arises when a third party reasonably believes the agent has authority based on the insurer’s representations or the agent’s general position, even if not actually granted in writing. Implied authority comes from the duties and relationship of the agent to the insurer, inferred as necessary to carry out the express powers, but it isn’t explicitly written. Ex officio authority refers to authority by virtue of holding a particular office or position, not from a written contract granting specific acts.