What type of authority is specifically defined in a producer's agreement?

The type of authority that is specifically defined in a producer's agreement is express authority. This authority is explicitly granted to the agent or producer through written or verbal communication, detailing the specific duties and powers they hold on behalf of the insurer. For example, a producer may be given express authority to sell certain types of insurance policies, negotiate premiums, or manage claims, as outlined in the producer's contract.

Express authority is crucial within the context of insurance because it delineates the boundaries within which a producer can operate, creating clarity and agreement between the producer and the insurer. This ensures that both parties are aware of what the producer is authorized to do, reducing the risk of misunderstandings and unauthorized actions.

The other types of authority—implied, apparent, and restricted—do not fit this context as clearly. Implied authority pertains to actions that are not specifically outlined but are necessary for carrying out the duties expressly delegated. Apparent authority refers to a situation where a third party believes an agent has authority based on the conduct of the insurer. Restricted authority would typically relate to limitations imposed on the producer's abilities, which is not specifically defined in a producer's agreement.