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.
Authority granted by the insurance company who will ultimately assume responsibility for providing coverage. Allows an agent to act on behalf of the company for specific reasons and within prescribed guidelines.
A contractual agreement between a managing agent and a coverholder under which the coverholder is authorised to enter into contracts of insurance for the account of the members of the syndicate concerned, subject to specified terms and conditions. A number of managing agents may agree to participate in the same binding authority on a percentage basis so that each syndicate takes a proportion of the premiums and pays the same proportion of the claims arising under the agreement.
Law that controls the outcome of a case. For example, a decision on the same point of law by a higher court in the same state must be followed by a lower court in that state. See precedent.
The authority given to an agent whereby they may provide coverage to an insured without first submitting the risk to an insurance company for approval.
An authority given by an insurer (or a reinsurer) to an agent to accept risks on the insurer's behalf.
An agreement for insurance or reinsurance whereby an Underwriter delegates underwriting authority to another party, usually a broker or a managing general agent.