What is express authority in the context of insurance agents?

Express authority refers to the specific and clearly defined powers granted to an insurance agent, often documented in a written agreement or contract. This means the agent has explicit permission from the insurer to perform certain actions, such as binding coverage or negotiating terms with clients. This clarity helps to ensure that both the agent and the insurer understand the extent of the agent's capabilities and responsibilities within the scope of their work.

This concept is important as it sets clear boundaries and expectations for the agent's actions and decisions. In contrast, the other interpretations—such as authority being implied or based on public perception—reflect more ambiguous forms of permission that do not provide the same level of clarity and formality as express authority does.