What principle allows an insurance intermediary to claim postage costs if not explicitly stated in the agency terms?

The principle of usual authority allows an insurance intermediary to claim postage costs even if these expenses are not explicitly defined in the agency terms. Usual authority refers to the authority that is generally understood to be granted to an agent based on the nature of their role. This concept acknowledges that certain costs are customarily associated with carrying out the duties of an agent.

In the context of an insurance intermediary, it is common for agents to incur various operational expenses, such as mailing and communication costs, while performing their duties on behalf of the insurer. Because these expenses are typically expected and accepted in the agent's practice, the law recognizes that intermediaries have the usual authority to incur such costs and seek reimbursement for them directly.

Contractual authority refers to the rights specifically outlined in the contractual agreement between the parties, while express authority pertains to explicitly stated powers granted to an agent. Limitations of authority involve the restrictions placed on the agent's ability to act. Therefore, these concepts do not provide the same basis for claiming postage costs not specified in the agency terms as the principle of usual authority does.