What type of authority is defined as authority that is not explicitly stated in writing, but is assumed to exist for insurance transactions?

Implied authority refers to the power that an agent automatically has in order to perform their duties, even if such authority is not explicitly written in a contract or agreement. This type of authority stems from the nature of the agent's position and is essential for carrying out the essential functions of the agency relationship.

For instance, if an agent represents an insurance company, they may have the implied authority to negotiate contracts or settle claims on behalf of the insurer, without needing explicit permission for every single action. This ensures that operations can run smoothly and efficiently, as it would be impractical for agents to seek consent for every specific transaction they undertake.

The other concepts presented—express authority, apparent authority, and actual authority—relate to different aspects of the authority relationship. Express authority is clearly defined and documented, while apparent authority deals with the perceptions of third parties regarding an agent's authority. Actual authority generally encompasses both express and implied authority. Understanding these distinctions is critical in the context of agency law and insurance practices.