CARD Q014
An agency agreement expressly permits an agent to collect initial premiums. What type of authority is this?
- Implied authority
- Apparent authority
- Express authority
- Beneficiary authority
Express authority
Express authority is specifically granted by the principal. Implied authority supports authorized duties; apparent authority arises from the principal’s outward conduct.
Why each choice is right or wrong
A. Implied authority
Incorrect. Implied authority supports expressly granted duties rather than being specifically stated.
B. Apparent authority
Incorrect. Apparent authority arises from the principal’s outward conduct toward third parties.
C. Express authority
Correct. Express authority is specifically granted by the principal. Implied authority supports authorized duties; apparent authority arises from the principal’s outward conduct.
D. Beneficiary authority
Incorrect. A beneficiary role does not grant an agent authority to collect premiums.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.