Final answer:
An agent acting beyond the granted authority by contract is not backed by the insurer. The distinction between actual, apparent, and implied authority is crucial to determining the liability of the insurer for the agent's actions.
Step-by-step explanation:
An agent whose actions exceed the authority granted by the contract is not backed by the insurer. This situation occurs when the agent undertakes actions that are beyond the scope of their actual authority as defined by their contract with the insurer.
However, it is important to distinguish this from apparent authority or implied authority, which are concepts where an agent has the power to act on behalf of the insurer because they seem to have the authority or because such authority is necessary to perform duties directly related to the tasks authorized. If an agent acts outside of their authority and this is not recognized by the insurer or is not reasonable based on their position, they are not backed by the insurer, and any contracts or agreements made under such unauthorized actions are typically non-binding to the insurer.