The power given to an individual producer that is not specifically outlined in their contract is referred to as what type of authority?

The type of authority given to an individual producer that is not explicitly detailed in their contract is known as implied authority. This authority arises from the role that the producer fulfills and enables them to perform acts that are necessary to execute their job effectively, even if those acts are not specifically mentioned in the contract.

Implied authority allows producers to take actions that are typical or necessary in their dealings with clients. For example, if a producer is responsible for selling insurance policies, they likely have implied authority to provide quotations, collect premiums, and submit applications to the insurer. This authority is rooted in the understanding that such actions are a standard part of their duties and necessary for the business.

It's important to differentiate this from express authority, which is clearly articulated in the contract, and apparent authority, which pertains to the perceptions of third parties about the producer's ability to act on behalf of the insurer. Limited authority is a term that would suggest restrictions on the powers granted to the producer, which does not align with the definition of what implied authority represents.