What authority grants a producer the right to collect premiums when the agency contract does not specify?

The correct answer is that implied authority grants a producer the right to collect premiums when the agency contract does not specify this responsibility. Implied authority refers to the unwritten authority that is inferred from the actions or position of the producer within the agency. It allows producers to act in ways that are commonly accepted within the industry, even if such actions are not explicitly stated in the agency contract.

In this context, it is typically understood that collecting premiums is a standard function of an insurance producer, allowing them to effectively facilitate transactions on behalf of the insurance company. Since the specific details regarding this authority are not outlined in the agency contract, the producer can rely on implied authority to perform such tasks without needing express permission.

The other options relate to different types of authority but do not accurately describe the situation. Express authority refers to the powers explicitly granted in a written contract. Apparent authority arises when a third party believes that an agent has certain powers based on their interaction with the principal, regardless of whether such authority is actually given. Assumed authority is not a standard term used within the context of insurance authority and does not apply here. Understanding these distinctions is important for producers to operate effectively within the legal framework of their agency contracts.