Which is NOT a type of authority related to insurance practices?

Study for the Louisiana Title Insurance Exam. Engage with flashcards and multiple choice questions. Hints and explanations guide your way. Prepare confidently for your certification!

Indefinite authority is not recognized as a type of authority related to insurance practices. In the context of insurance, there are three main types of authority: express authority, implied authority, and general authority.

Express authority refers to the explicit powers granted to an agent by a principal, often documented in a written agreement. This encompasses specific actions the agent can take on behalf of the principal, such as binding coverage or executing policies.

Implied authority is the authority that is not explicitly stated but is necessary for an agent to conduct their duties effectively. This might include actions that are commonly understood as part of the agent's role, even if they aren't specifically outlined in a contract.

General authority typically refers to the overall power an agent has to act on behalf of the principal in broader terms, allowing for a range of actions in line with the business's needs and the agent's role.

In contrast, "indefinite authority" lacks a clear definition or recognition in insurance practices, making it the correct choice for this question.

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