What type of authority is explicitly detailed in the agent's contract with the insurance company?

The correct answer is express authority, which refers to the specific powers granted to an agent through a formal agreement or contract with the insurance company. This authority is clearly outlined in the contract, detailing what the agent is allowed to do, such as selling policies, collecting premiums, and submitting claims on behalf of the insurance company.

Express authority is significant because it provides a clear framework within which the agent operates, ensuring that all actions taken are within the agreed parameters set forth in the contract. This type of authority facilitates accountability and transparency between the agent and the insurance provider.

Implied authority, on the other hand, refers to powers that are not explicitly stated in the contract but are necessary to fulfill the duties that are specified. Inherent authority pertains to the authority that an agent has simply by virtue of their position, while presumed authority usually relates to assumptions made by third parties about an agent's powers based on their actions or the business context. However, since express authority is the only type that is expressly detailed within the legal framework of the contract, it is the most accurate choice for this question.