The powers directly given to a producer in an agency contract are called what?

The powers directly given to a producer in an agency contract are termed "express" powers. Express powers are the specific authorities and responsibilities outlined in the contract that allow the producer to act on behalf of the insurer. This might include the authority to bind coverage, collect premiums, or make certain decisions regarding policy issuance.

Such clarity in the agency relationship ensures that both the producer and the insurer understand the scope of what the producer is authorized to do. For instance, if the agency contract specifies that the producer has the authority to issue policies up to a certain limit, that would be an express power.

In contrast, apparent powers refer to the authority a producer seems to have to third parties based on the context of their role, not explicitly defined in the contract. Implied powers are those that are not expressly stated but are necessary to fulfill the duties outlined in the contract. Assumed powers are similar to apparent powers and are based on the perception of authority rather than formal agreement.