The appearance that an individual has the authority or power to act as an organization's agent, even though the organization has bestowed no such authority or power to that individual.
The perceived ability of an agent to bind an insurance contract to an insurance company. If an agent or agency holds themselves out as representing a particular company it is reasonable for the public to assume that such authority is established contractually, even if it is not. Apportionment - The method of dividing a loss between multiple insurers that cover the same loss.
Authority that is not expressly conferred on an agent but that the principal either intentionally or negligently allows a third party to believe the agent possesses. See agent and principal. Compare to express authority and implied authority.
Authority that is not expressly given to an agent, but that a principal either intentionally or negligently allows a third party to believe the agent possesses. TO TOP
In agency law such authority which a third person can reasonably assume that an agent has on the basis of actions or inactions of the principal. This is so despite the fact that the agent may not have actual authority.
The authority the general public assumes an agent has due to his or her actions, regardless of whether the authority has been given to the agent by law or contract.
Authority of an agent that is created when the agent oversteps actual authority, and when inaction by the insurer does nothing to counter the public impression that such authority exists. (G)
Where an agent compels, by actions, omissions or statements, a third party to believe the agent has the authority to bind a principal. The authority to bind is apparent due to the behavior of the agent but may not actually exist.
Apparent authority is authority that is not provided by contract nor intended by the insurer but which appears to the client to be given to the agent based upon the agent's believable statements.
the AUTHORITY derived from the perception of third parties (i.e., clients) as to the powers an AGENT would be expected to have based on circumstances. Apparent authority may protect the client by allowing unauthorized acts by the agent to bind the PRINCIPAL (i.e., the insurance company), but the agent will ultimately be held liable to the principal. An agent's actual authority is equal to his EXPRESS AUTHORITY plus his IMPLIED AUTHORITY.
Also known as estoppel, it is the authority of an agent which is deemed to apply in law, perhaps by inference from the principal's present or previous conduct.
Authority perceived by a third party to flow from a principal to an ostensible agent when in fact no agency relationship exists.
Apparent authority is a term used in the law of agency to describe a situation in which a principal leads a third party to believe that an agent has authority to bind the principal, even where the agent lacks the actual authority to bind the principal. In such circumstances, the law will hold the principal liable for the acts of the agent, out of fairness to the third party. There must be some act or some knowing omission on the part of the principal - if the agent alone acts to give the third party this false impression, then the principal is not bound.
