An agent whose actions exceed the authority granted by contract is considered to be?

When an agent's actions exceed the authority granted by their contract with the insurer, they are deemed to be operating outside of their authorized capacity. This situation leads to the understanding that such actions are not endorsed or backed by the insurer, making it clear that the agent is acting beyond the scope of their official role.

In the context of agency law, if an agent takes actions that are not covered under the terms of their contract, the insurer may disassociate itself from any liability arising from those actions. Consequently, the agent’s actions could result in harming their professional relationship with the insurer, potentially leading to repercussions such as invalidation of contracts or the inability to claim any commissions for unauthorized business.

The other choices do not align correctly with the implication of exceeding granted authority. For example, acting within the law would suggest compliance with authority, and maintaining fiduciary responsibility indicates adherence to ethical standards that would involve operating within the defined role. Compliance with guidelines similarly implies that the agent is following the prescribed limits of their authority. In contrast, the correct choice accurately highlights the risk and lack of endorsement from the insurer when the agent exceeds their authorized actions.