Explain the Distinction Between an Insurance Broker and an Insurance

question 34

Essay

Explain the distinction between an insurance broker and an insurance adjuster.

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Definitions:

Actual Authority

The explicit power granted to an agent by a principal, either through oral or written agreement, allowing the agent to act on the principal's behalf.

Express Authority

Authorization granted to an agent in clear, direct, and definite terms by the principal.

Implied Authority

Authority not expressly granted but assumed to be given due to the nature of a job or position.

Apparent Authority

A form of authority that an agent seems to have because of actions or representations made by the principal, leading third parties to reasonably believe the agent is authorized.