Why does Bob have apparent authority in adjusting Jane's insurance claim?

Apparent authority arises when a reasonable person in the position of a third party believes that someone has the authority to act on behalf of another, primarily based on the actions or conduct of the principal. In this scenario, Bob's apparent authority in adjusting Jane's insurance claim can be attributed to the fact that Acme Insurance accepted his estimate and subsequently paid her claim.

This indicates that Bob acted in a manner consistent with the authority associated with his role, creating the perception for Jane and possibly others that he had the necessary authority to adjust her claim. By receiving and acting upon his estimate, Acme Insurance implicitly endorsed Bob’s actions, thereby solidifying his apparent authority in this matter.

In contrast, while Bob's estimation skills and licensure contribute to his professional qualifications, they do not alone validate his authority in the context of the claim adjustments. Additionally, if he had been specifically authorized in writing, it would provide actual authority but does not pertain to the concept of apparent authority as understood in this context.