Which of the following are the authorities that an agent can hold?

An agent in the context of insurance can hold two primary types of authority: express authority and implied authority.

Express authority is the explicit power given to the agent by the principal (typically the insurance company), often outlined in a written agreement or contract. This authority clearly defines the activities the agent is permitted to undertake on behalf of the insurer, such as binding coverage or handling claims.

Implied authority refers to the powers that are not explicitly stated but are necessary for the agent to perform their job effectively. This can include actions that are commonly accepted in the insurance industry and are recognized to be part of the agent's responsibilities, even if they are not directly stated in their contract. For example, if an agent has the express authority to sell insurance, they may also have the implied authority to discuss policy options and provide customer service to clients.

Understanding the distinction between express and implied authority is crucial for agents, as it affects their ability to act on behalf of the insurance company and the legal ramifications of their actions.