What does implied authority allow an insurance agent to do?

Implied authority allows an insurance agent to perform job duties and fiduciary responsibilities that are not explicitly defined in their contract but are necessary for their role. This includes actions that are customary and necessary for the completion of the agent's tasks and responsibilities, such as binding coverage, collecting premiums, and servicing clients. Implied authority is essential as it facilitates the smooth functioning of day-to-day operations and helps agents serve their clients effectively without waiting for prior approval from the insurer for every action.

The other choices reference limitations or actions that are either too narrow or misaligned with the concept of implied authority. Implied authority does not allow agents to act outside of what is typical for their role or initiate binding contracts without necessary approvals from the insurer. The focus of implied authority is on carrying out responsibilities that are understood to be part of the agent’s role, rather than actions that require explicit agreement or are not part of the agent's customary duties.