Apparent Authority (perceived Authority)
Definition of "Apparent authority (perceived authority)"
Specific powers that a prospective insured believes the insurance company has granted to its agent. For example, if the insurance company has furnished the agent a rate book, application forms, stationery with the company logo, and sales literature, the prospective insured has reason to believe that an agency relationship exists between the insurance company and the agent. According to the doctrine of estoppel, the insurance company is prohibited from denying the relationship.
Popular Insurance Terms
Presence of other contract (s) covering the same conditions. When more than one policy covers the exposure, each policy will pay an equal share of the loss. ...
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Employee of the insurance company who has the authority to appoint brokers on behalf of the insurance company. This supervisor has the objective and responsibility to sell the insurance ...
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