What are the two types of contracts between an insurer and an intermediary?

The correct choice highlights the distinction between express contracts and implied contracts, which is fundamental in the context of agreements between an insurer and an intermediary. An express contract explicitly states the terms and conditions agreed upon by both parties, often documented in writing. This type of contract lays out the responsibilities, obligations, and expectations in clear language, making it easy to refer to in case of disputes.

On the other hand, an implied contract arises from the conduct of the parties involved, rather than from explicit written or verbal agreement. In the insurance context, this means that even if certain terms are not articulated, they can be inferred based on the behaviors and practices that the insurance company and intermediary have established over time.

Understanding this distinction is essential, as both types of contracts govern the relationship and expectations between insurers and intermediaries, impacting how insurance policies are distributed and managed.