If Bob submitted his estimate to Acme Insurance and they paid Jane's claim, Bob had which type of authority?

In the context of insurance and agency relationships, express authority refers to the authority that an agent has clearly outlined by the principal either through verbal or written instructions. When Bob submitted an estimate to Acme Insurance that resulted in payment to Jane for her claim, it indicates that Bob was acting within the specific scope of authority given to him by Acme Insurance.

This situation suggests that Bob had a formal understanding with Acme Insurance about his role in processing claims and estimates, making it an instance of express authority. This type of authority is critical in ensuring that agents function within well-defined parameters set by the insurer, thus providing clarity and accountability in insurance transactions.

The other types of authority, such as implied, absolute, or limited authority, do not align with the scenario presented. Implied authority typically refers to powers that the agent can assume without explicit instructions based on the nature of the agent’s position, while absolute authority would suggest unrestricted powers, which is not indicated here. Limited authority suggests constraints that would not encompass the ability to process claims as Bob did.