Washington State Insurance Practice Exam

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Prepare for the Washington State Insurance Exam. Study with interactive flashcards and multiple-choice questions. Each question offers hints and explanations to help you succeed.

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What is express authority in an insurance context?

  1. Authority derived through actions

  2. Authority derived through circumstances

  3. Authority written in the contract

  4. Authority inferred by general business practices

The correct answer is: Authority derived through actions

Express authority in an insurance context refers to authority that is specifically given through written or verbal communication. This type of authority is clear and direct, leaving no room for interpretation. It is essentially derived through the actions and words of the principal (insurance company) that explicitly grant the agent the power to act on their behalf within the confines of the contract. This distinguishes it from implied authority or apparent authority, which are based on circumstances or general business practices.

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