Which term best describes the authority an agent appears to have, based on the conduct and representation?

The concept of apparent authority refers to the perception of authority that an agent conveys to third parties through their actions and representations. This means that even if the agent doesn't have explicit or formal authority granted by their principal—such as specified powers in a contract—others may reasonably believe that the agent has the capability to act on behalf of the principal based on the agent's conduct.

In practice, if an agent behaves in a way that suggests they are authorized to perform certain acts, clients and third parties may assume that they have the authority to engage in those acts. This is crucial in the context of agency relationships, especially in insurance, where misunderstandings about an agent’s authority could lead to disputes regarding policy obligations or claims.

Express authority, by contrast, is the authority that is explicitly granted to an agent by the principal, while implied authority arises from the agent's position or customary practices within their role. Inferred authority is not a standard term used in agency law. Thus, in this context, the term that encompasses the appearance of authority based on an agent's conduct is indeed apparent authority.