Definition - What does Implied Authority mean?
Implied authority is granted to agents who work on behalf of a company. Insurance agents are implied authorities because they have been granted permission to represent insurance companies and sell policies on their behalf.
Insuranceopedia explains Implied Authority
Insurance companies improve their efficiency by allowing agents to do some of the work on their behalf. Implied authority, then, not only enables agents to make a living but also improves the insurer's profitability.
Insurance companies retain the right to cancel the agent's implied authority if they so desire.
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