What type of authority do producers have when soliciting sales for insurers?

Producers, or insurance agents, have both express and implied authority when soliciting sales for insurers. Express authority is the explicit power given to agents by the insurance company through written contracts or agreements. This includes the ability to sell specific policies, negotiate contract terms, and bind coverage as outlined by the insurer.

Implied authority, on the other hand, comes from the nature of the agent's role and the expectations set by the insurer. It allows agents to perform actions that are not explicitly stated in the contract but are necessary to fulfill their duties. For example, if a producer is selling a policy, they might imply the authority to answer questions about coverage or assist in the claims process, even if such actions are not directly specified in their formal agreement.

Having a combination of both express and implied authority enables producers to effectively represent the insurer and serve customers, ensuring that they can handle a range of situations that may arise during the sales process. This dual authority helps create a more efficient sales environment, as agents can address various issues and customer needs without requiring explicit permission for every action.