Which term describes authority that the principal specifically grants, either in writing or orally?

Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

Which term describes authority that the principal specifically grants, either in writing or orally?

Explanation:
Express authority is the authority the principal explicitly gives to the agent, either in writing or orally. This is a direct, clear grant of power to act for the principal in defined matters, created by the principal’s words or formal documents. It fits the description of “specifically granted” because it is an explicit authorization, as opposed to authority that is inferred from the agent’s position or from the principal’s conduct (implied) or from the third party’s reasonable belief based on the principal’s representations (apparent). While all express authority is a form of actual authority, the key distinction here is that the grant is explicit—written or spoken.

Express authority is the authority the principal explicitly gives to the agent, either in writing or orally. This is a direct, clear grant of power to act for the principal in defined matters, created by the principal’s words or formal documents. It fits the description of “specifically granted” because it is an explicit authorization, as opposed to authority that is inferred from the agent’s position or from the principal’s conduct (implied) or from the third party’s reasonable belief based on the principal’s representations (apparent). While all express authority is a form of actual authority, the key distinction here is that the grant is explicit—written or spoken.

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