Which authority is described as the authority implicitly conferred on an agent by custom, usage or the principal's conduct?

• A. Implied authority
• B. Express authority
• C. Apparent authority
• D. Actual authority

Answer: (A)

Implied authority is authority not stated in writing or verbally but inferred from the agent’s role, customary practices, or the principal’s conduct. It exists so the agent can reasonably carry out the duties and express authority, using actions that are customary or necessary to accomplish the principal’s objectives. In insurance, for example, a producer may bind standard risks or issue routine endorsements because industry norms and the principal’s conduct indicate such actions are part of the agent’s job, even if not explicitly written. This differs from express authority (explicitly granted) and apparent authority (what a third party reasonably believes based on the principal’s representations).