An agent whose actions exceed the authority granted by contract is considered to be?

When an agent exceeds the authority granted by their contract with the insurer, they are, in fact, not backed by the insurer in those actions. This means that if the agent makes commitments or decisions that fall outside of what they were authorized to do, the insurer is typically not responsible for those actions.

This concept is crucial in understanding the boundaries of an agent's powers and the legal implications of acting beyond those powers. An agent operates under specific authorities defined in contractual agreements, and any actions taken outside of these parameters can expose both the agent and any affected parties to difficulties or disputes. The insurer may deny any claims or obligations that arise from such exceeded authority, making it imperative for agents to operate strictly within their granted powers to ensure that they are representing the insurer accurately and effectively.

The other options relate to different aspects of an agent's authority. Apparent authority refers to the authority an agent appears to have to third parties, which can sometimes mislead clients if the agent acts outside their actual authority. Implied authority encompasses powers that may not be explicitly stated but are necessary for carrying out the agent's responsibilities. However, in this scenario, when an agent acts beyond their contractually defined limits, the most accurate characterization is that they are not backed