What authority does 'implied authority' grant to an insurance agent?

Implied authority grants an insurance agent the ability to act on behalf of the insurer in a manner that is necessary and customary for their role, even if it has not been explicitly stated. This type of authority allows agents to undertake certain actions that are generally understood to be part of their job, without needing permission for every single decision. For example, an agent typically has implied authority to provide quotes, collect premiums, and bind coverage immediately in certain circumstances, as these actions are commonly accepted practices within the industry.

This concept is essential as it allows agents to operate efficiently and respond to client needs without always having to obtain prior consent from the insurer. The other options reflect more formal types of authority, which are not aligned with the nature of implied authority. Written permission, explicit endorsements, and legally stated authority denote a more formal relationship and specific boundaries, while implied authority is about what is inherent to the agent's position and the assumptions made by all parties involved.