The authority that a principal intends an agent to have and that arises incidentally from an express grant of authority. See agent and principal. Compare to apparent authority and express authority. | Back
Authority that, while not specifically granted to the agent in the agency agreement, the agent can assume he or she has through common sense. Authority that is apparently necessary for an agent's ability to carry out day to day or routine responsibilities.
Implied authority comes from the powers that the company customarily gives its agents rather than from the contract between the agent and the insurer. An example of implied authority can be seen in the insurer's giving the agent the express authority to solicit applications for life insurance on its behalf; by giving the agent that express authority, it also gave the agent the implied authority to telephone prospects on its behalf to arrange sales appointments.
The power of an agent to bind his principal that has not been expressly stated but that can be deduced from the principal's conduct.
Authority of an agent that the public may reasonably believe the agent to have. If the authority to collect and remit premiums is not expressly granted in the agency contract, but the agent does so on a regular basis and the insurer accepts, the agent has implied authority to do so.
Authority that, although it is not expressed in a contract (express authority) is necessary to perform the duties expressly authorized.
The authority of an agent to perform acts which are reasonably necessary to accomplish the purpose of the agency.
The right of an agent, when directed by a principal to accomplish a task, to do what is reasonably necessary to accomplish it.
Implied Authority of Contract is a legal term. In contract law, it is the implied ability of an individual to make a legally binding contract on behalf of an organization, by way of uniform or interaction with the public on behalf of that organization. When a person is wearing a uniform or nametag bearing the logo or trademark of a business or organization; or if that person is functioning in an obviously authorized capacity on behalf of a business or organization, that person carries an Implied Authority of Contract.