Express Authority is defined as:

• A. The authority NOT expressed in the contract
• B. Authority granted by the insured
• C. The authority given to the insurance producer by the insurer by contract
• D. Express Authority

Answer: (C)

Express Authority means the explicit permission given to the insurance producer by the insurer, defined in the contract. This is the specific set of acts the insurer authorizes the producer to perform on its behalf, such as soliciting applications, collecting premiums, binding coverage within the contract’s limits, issuing policies or endorsements, and making changes that the contract allows. Because it’s spelled out in the agency agreement, it directly ties the producer’s powers to the insurer’s approval.

This is why the correct choice describes authority given to the producer by the insurer through the contract. It isn’t the authority not expressed in the contract (that would be implied authority), and it isn’t authority granted by the insured (the insured does not grant the insurer’s authority to the producer). The phrasing that merely restates “Express Authority” isn’t a definition, either.