Implied authority refers to:

Implied authority refers to the authority that is not explicitly stated in an agent's contract but is necessary to fulfill the responsibilities of the position. This type of authority allows agents to perform actions that are reasonably expected to carry out their duties within the context of their role, even if those actions are not specifically outlined in their contractual agreement.

For instance, an insurance agent may be viewed as having implied authority to negotiate terms with clients or to process claims, as such actions are typically understood as part of their job in the insurance industry. This authority is derived from the expectations of the role rather than a specific mandate laid out within the contract itself.

In contrast, express authority refers to the authority that is clearly stated within the agent's contract, and the other options delve into concepts that can lead to misunderstandings of how authority operates in insurance transactions. Implied authority plays a crucial role in the practical functioning of an agency, facilitating actions necessary for completing transactions and serving clients effectively.