Which type of authority allows insurers to engage in unlisted sales-related activities?

Implied authority refers to the power of an insurance agent to perform actions that are not explicitly stated in their contract but are necessary to accomplish their duties. This type of authority allows agents to engage in activities related to selling insurance or managing policies indirectly. For instance, while the contract may not explicitly allow the agent to conduct certain promotional activities, by virtue of their role and function, they may be expected to perform such activities to effectively serve clients and sell policies.

In this context, insurers may rely on implied authority to authorize agents to engage in unlisted sales-related activities that are customary in the industry, ensuring that agents can fulfill their responsibilities and meet client needs without being restricted to only those activities that are specifically detailed in their agreements. This flexibility is essential in the sales process, as it allows agents to adapt to various situations and client requests in a way that promotes effective salesmanship and customer service.