Definitions for "Binding Authority"
This is the law that determines a case's outcome. Higher court rulings have binding authority over rulings in the lower court of the same state.
When one party (usually an agent) has been given the right and commensurate authority to represent another party (usually an insurer), in effecting or creating an insurance contract.
The authority extended to an agent by an insurer to provide insurance, usually on a temporary basis, until a policy can be written.