Actual Authority
 |
Definition of 'Actual Authority'Specific powers, expressly conferred by a principal (often an insurance company) to an agent to act on the principal's behalf. This power may be broad, general power or it may be limited, special power.Also known as "express authority." |
 |
Investopedia explains 'Actual Authority'Actual authority arises where the principal's words or conduct rationally cause the agent to believe that he or she has been empowered to act. An agent receives actual authority either orally or in writing. Written authority is preferable, as it is somewhat difficult to establish authority that is given verbally. In a corporation, written express authority includes bylaws and resolutions from directors' meetings which grant the authorized person permission to carry out a definite act on behalf of the corporation. |
Related Definitions
Articles Of Interest
-
Proxy Voting Gives Fund Shareholders A Say
You have the right to take part in important company decisions - even if you cannot attend the meetings. -
Three Documents You Shouldn't Do Without
Estate planning is not just about the division of assets after you die. Read on to save your loved ones extra grief. -
Your Will: Why You Need A Power Of Attorney And Beneficiaries
What would happen if you were suddenly unable to manage your financial affairs? Preparation is the best protection. -
Letter Of Instruction - Don't Leave Life Without It
This simple document can take the guesswork and headache out of settling your estate. -
5 Things You Should Know About The New Health Insurance Marketplace
Here are five things you should know about the new Health Insurance Marketplace (AKA Health Insurance Exchange), which launches on October 1. -
What changes might I need to make to my insurance policy?
The number one thing to remember about insurance is that, just like everything else, it changes over time. The top-of-the-line policy that you bought five years ago might not even be available ... -
The Beginner's Guide To Homeowners' Insurance
Discover everything new homeowners need to know before they sign on the dotted line. -
Life Insurance Clauses Determine Your Coverage
Understanding these key parts of your policy will help you to ensure that your family will be covered. -
Why would you want a monthly benefit versus a daily benefit?
An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance policy the policyholder signs up for, the payments are made directly ... -
How do I choose which insurance company to use?
Picking an insurance company to use is not an easy task, considering the financial crisis of 2008 and 2009. Several financial institutions and insurance companies have gone out of business, merged ...
Free Annual Reports