The authority given by an insurance company to an agent that is not specifically communicated is known as?

The correct answer is implied authority. This term refers to the authority that an agent possesses to perform acts that are necessary to fulfill their duties, even if those specific powers have not been explicitly outlined in a formal agreement. Implied authority arises from the nature of the agent's role and the expectations that come with it.

For example, if a title insurance producer is expected to handle standard transactions and processes within their role, they may have the implied authority to negotiate terms or make decisions that are customary in the industry without needing the official authorization for each action from the insurance company. This kind of authority allows agents to operate effectively within the scope of their responsibilities, ensuring that they can act in the best interest of their clients and the employer while facilitating smooth transactions.

Other terms such as apparent authority, express authority, and actual authority describe different nuances of authority in an agency relationship but do not align with the definition of the authority communicated indirectly or through common understanding as implied authority does.