What type of authority is assumed by the insurer?

The insurer operates under implied authority, which means that certain powers are automatically assumed due to the nature of the relationship with the title agent. This authority isn't explicitly stated in writing but is understood as necessary for the insurer to fulfill its obligations under the insurance contract. For instance, if the insurer appoints a title agent, it is implied that the agent has the authority to perform actions that are typical and necessary for processing title insurance, such as collecting premiums and issuing policies.

Implied authority ensures that the title agent can act efficiently and effectively to serve the interests of both the insurer and the insured without needing each specific action to be expressly detailed in a contract. This form of authority is crucial for smooth operations in title insurance, as it allows agents to make decisions that align with the insurer's interests based on the context of their role. Therefore, recognizing implied authority is vital for understanding the dynamics of how title agents and insurers interact within their professional capacities.