90. The authority of an insurance producer to do certain acts not listed in the agency contract but obvious from the duties that are listed is known as
Answer: D
Implied authority.
Implied authority refers to the authority that an insurance producer possesses to perform acts that are not explicitly outlined in the agency contract but are necessary to fulfill their duties. This type of authority allows the producer to act in a manner that is consistent with their responsibilities and the expectations of their role.
A) Apparent authority.
Apparent authority involves the perception that an agent has the authority to act on behalf of the principal, based on the principal’s representations to third parties. While it can influence how third parties view the agent's actions, it does not encompass the internal duties and responsibilities implied by the agency contract, making it incorrect in this context.
B) Binding authority.
Binding authority refers to the power of an agent to enter into contracts on behalf of the principal, effectively binding the principal to the terms of the agreement. This term is more about the contractual power rather than the implied duties that arise from an existing relationship, thus it does not accurately describe the authority being tested in the question.
C) Expressed authority.
Expressed authority is the power explicitly granted to an agent through the agency contract. This authority is clearly defined and does not include implied actions that are necessary for executing the listed duties. Therefore, it does not fit the definition provided in the question.
D) Implied authority.
Implied authority correctly identifies the type of authority that allows an insurance producer to take actions that are not explicitly detailed in the agency contract but are understood to be part of their responsibilities. This aligns perfectly with the context of the question.
Conclusion
Implied authority is the correct answer as it encompasses the necessary actions an insurance producer can take to fulfill their role without being explicitly stated in the contract. The other options—apparent, binding, and expressed authority—do not adequately address the concept of actions that are inherently understood within the duties of the agency relationship. Thus, only implied authority accurately reflects the nature of the authority being described.