Expressed Authority is defined as ...

Expressed Authority is defined as ...

• A. Authority that arises from specific statements made by the principal (employer) to the agent (employee)
• B. Authority that results from the agent's general business practices
• C. Authority granted by law to perform insurance transactions
• D. Authority inferred from normal course of business

Answer: (A)

Expressed Authority is authority that comes directly from explicit statements by the principal to the agent, either in writing or spoken. When the principal clearly tells the agent, “you may do X on our behalf” or “you may bind policies up to a certain limit,” that clear instruction creates express authority. It’s the authority the principal intentionally grants through specific words or documents. This is different from implied authority, which arises from the agent’s position or the business’s usual practices—actions the agent is reasonably expected to take to perform their duties even without explicit instructions. It’s also distinct from authority granted by law, which comes from statutes or regulations rather than the principal’s instructions, and from authority inferred from the normal course of business, which is a form of implied authority based on customary operations. So the description that matches express authority is the one based on specific instructions or statements from the principal to the agent.

Expressed Authority is authority that comes directly from explicit statements by the principal to the agent, either in writing or spoken. When the principal clearly tells the agent, “you may do X on our behalf” or “you may bind policies up to a certain limit,” that clear instruction creates express authority. It’s the authority the principal intentionally grants through specific words or documents.

This is different from implied authority, which arises from the agent’s position or the business’s usual practices—actions the agent is reasonably expected to take to perform their duties even without explicit instructions. It’s also distinct from authority granted by law, which comes from statutes or regulations rather than the principal’s instructions, and from authority inferred from the normal course of business, which is a form of implied authority based on customary operations.

So the description that matches express authority is the one based on specific instructions or statements from the principal to the agent.