What does Actual Authority mean?

It is the case when certain powers have been invested into a person by his/her superior. The term actual authority in most of the cases is in close relationship with insurance agencies, where an insurance agent is invested with such powers he is able to represent the principal. Depending on the principal’s will, the agent can behold general powers and than he can act and make decisions more freely and independently, or he can have limited powers, which means his power is being conditioned.

Actual Authority explained

Actual authority is when a subaltern is given the power of representing his superior. There may be the case when a subaltern receives only a verbal confirmation that he can freely represent and make decisions regarding the respective company. However, the written confirmations are much more formal and thus somewhat more legal, and these have a more definite purpose and aim towards specific powers and tasks the agent has to/may carry out.