What type of authority is in writing and allows a producer to act on behalf of the insurer?

The correct answer is express authority, which refers to the specific powers granted to an insurance producer through a formal written agreement or contract with the insurer. This type of authority clearly outlines the actions that the producer is authorized to undertake on behalf of the insurer, such as binding coverage, collecting premiums, and issuing policies.

Express authority is critical in the insurance industry as it establishes a clear understanding between the insurer and the producer, ensuring that the producer operates within their boundaries and the insurer maintains control over their business transactions. This written authority serves as a legal basis for the producer's actions and helps protect both the producer and the insurer in case of disputes regarding the producer's capacity to act.

In contrast, implied authority, while also relevant, refers to the authority that is not explicitly stated but is necessary for the producer to fulfill their duties. Apparent authority involves the perception of authority by third parties, while limited authority typically restricts the scope of what the producer can do, making express authority the most clear and comprehensive form of authority for an insurer's representatives.