What does express authority refer to?

Express authority specifically pertains to the powers that are clearly and directly granted to an agent as outlined in the agency agreement. This designation is crucial in defining what an agent can do on behalf of an insurer, as it delineates the specific responsibilities and scopes of action that the agent has been authorized to exercise.

By having express authority, agents can confidently engage in transactions and communicate with clients, knowing they are acting within the parameters set by their insurer. This clear definition of power helps to mitigate misunderstandings between the agent and the insurer, as well as between the agent and clients, ensuring that all parties are aware of the limitations and capabilities associated with the authority granted.

The other options describe various forms of authority that do not align with the concept of express authority. Implied authority refers to those powers that are not explicitly stated but are necessary for carrying out the fiduciary duties of the agent. The customer's perception of authority often arises from implied authority rather than express terms outlined in the agency agreement. While negotiating rates may be part of an agent's duties, it falls under specific parameters rather than being a defining characteristic of express authority.