What type of authority does an insurance agent have when representing a company without restrictions?

The correct answer is that the insurance agent has express authority when representing a company without restrictions. Express authority refers to the specific powers granted to an agent by the insurer, typically outlined in a written agreement or contract. This authority allows the agent to perform actions on behalf of the insurer, such as binding coverage, issuing policies, and collecting premiums, as explicitly defined by the company.

Understanding express authority is crucial as it establishes the framework within which an agent operates, and it encompasses all activities that the company has clearly authorized. In this case, since the agent is representing the company without restrictions, they are acting under the express authority that has been explicitly delegated to them. This makes it clear how broad their powers are in facilitating insurance transactions for clients.

Other types of authority, such as general, limited, or implied authority, do not fit this scenario as closely as express authority. General authority allows for actions within a broad scope but may still come with limitations set by the company. Limited authority is more restrictive and only permits the agent to undertake specific tasks. Implied authority is inferred from the agent's actions, rather than formally granted, and typically would not cover a scenario where the agent represents the company without any restrictions.