What is express authority in an insurance contract?

Express authority in an insurance contract refers to the explicit powers that are clearly defined and stated in written form within the contract itself. This means that the terms and conditions, including the rights and responsibilities of the parties involved, are specifically outlined and understood without ambiguity. In the context of insurance, express authority enables agents and insurers to act within the limits of what has been agreed upon, ensuring that all parties are aware of their obligations and entitlements.

When express authority is clearly laid out in a written contract, it provides a legal basis for enforcement and helps prevent disputes that could arise from misunderstandings. Such clarity is crucial in maintaining trust and ensuring that the parties involved are aligned in their expectations. In contrast, other forms of authority, such as implied or apparent authority, derive from assumptions or interpretations that are not formally documented, which can lead to confusion or conflict.