What type of authority is expressly granted by one party to another?

The correct answer is express authority, which is defined as the specific powers that one party explicitly grants to another through a clear agreement or direct communication. This type of authority is typically documented in writing or verbally stated, making it unmistakable and clear. For instance, when an insurance company authorizes an adjuster to negotiate claims on its behalf, that authorization is considered express authority.

In the context of insurance and adjuster licensing, express authority is crucial because it delineates the boundaries of what the adjuster is permitted to do, ensuring that the actions taken are fully aligned with the intentions of the party granting authority. This clarity helps prevent misunderstandings or disputes about the scope of the adjuster's role and responsibilities within the claims process.