Apparent Authority Perceived Authority


Definition of "Apparent authority (perceived authority)"

Vi Arnold &  Paul Hernandez real estate agent
Vi Arnold & Paul Hernandez HBM2 Inc.

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.

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