Final answer:
The authority specified in an agency contract between an agent and an insurer is known as expressed authority.
Step-by-step explanation:
The authority of an agent which is spelled out in the written words of the agency contract between the agent and the insurer is called expressed authority. This is the specific authority granted to an agent by the terms of the agreement made with the principal. Expressed authority is directly stated in the contract and specifically describes the powers the agent has been granted to act on behalf of the principal, which in this case, is the insurer. An agent with expressed authority may enter into contracts and make decisions within the scope of their authority as clearly laid out in the written agreement.