What should the agent do if there is uncertainty about their authority?

When an agent faces uncertainty about their authority, consulting the insurance company for clarification is a prudent approach. This step ensures that the agent fully understands the scope of their powers and responsibilities within the context of their agency agreement. By seeking guidance from the insurer, the agent can ensure compliance with legal and company policies, protecting both themselves and their clients from potential miscommunications or unauthorized actions. This reinforces the importance of transparency and clear communication in the agent-insurer relationship.

Other options may lead to undesirable outcomes. Assuming implied authority without confirmation could result in overstepping boundaries, while acting without consideration of consequences could significantly harm the agent's professional standing and the client's interests. Lastly, strictly adhering to express authority without seeking clarification in uncertain situations may limit the agent's effectiveness in fulfilling their duties. Therefore, the most effective and responsible course of action is to consult the insurance company for clarification.