Which authority is necessary and usual for the producer to perform stated duties, but not specifically stated in the contract?

Implied authority refers to the powers that are not explicitly stated in a contract but are necessary for an insurance producer to perform their duties effectively. This authority allows the producer to take actions that are reasonably required to fulfill their responsibilities. For example, while a contract may outline specific obligations, the producer may need to make decisions or take certain steps that are standard within the industry to ensure that the needs of clients are met.

In the context of insurance, a producer might need to negotiate terms or make minor adjustments that are not detailed in the contract but are essential for day-to-day operations. This form of authority is based on the understanding that producers will act in the best interests of their clients and the business, facilitating smooth transactions and client relations.

The other types of authority, while important in different contexts, do not pertain to this concept as closely. Express authority is explicitly outlined in a contract, apparent authority relates to how a third party perceives a producer's authority based on the actions of the principal, and delegated authority involves assigning specific powers to another individual or entity. Therefore, implied authority is the most fitting choice for actions necessary for a producer to perform their stated duties without being detailed explicitly in the contractual terms.