What type of authority may not be explicitly stated but gives agents the ability to perform necessary tasks?

Implied authority is the correct answer because it refers to the power that is not expressly written or verbally communicated in a contract or agreement but is inferred from the actions, context, or circumstances surrounding an agent’s role. This type of authority allows an insurance agent to perform tasks that are essential or customary to their position, which means they can act in ways that are necessary for the completion of their duties, even if those specific actions are not detailed in the agreement.

For example, if an agent is expected to handle customer inquiries and process claims, they may have implied authority to take certain actions, such as collecting basic information or filling out forms needed for claims, without those actions being expressly granted. This ensures that the agent can fulfill their responsibilities effectively, providing fluidity in transactions and operations.

In contrast, exclusive authority typically implies sole rights over certain activities or decisions, and apparent authority deals with situations where a third party perceives that an agent has authority even when they may not. General authority usually refers to powers that are broadly defined and clearly stated, which does not align with the concept of authority that is implied rather than explicitly expressed.