A written certificate issued by one party showing the authority that party has granted to another to perform on the first party's behalf. The two most common examples in insurance are state insurance department grants to insurers issuing authority to write insurance kinds of policies and contracts within that state, and the certificate which grants authority to agents to write policies on behalf of an insurer.
Issued by the state, it licenses the operation of an Health Maintenance Organization (HMO).
(1) A document created by an insurer detailing the authority granted to an agent or group of agents to act on behalf of the insurer. (2) In the United States, a certificate issued by a state's insurance department authorizing an insurer to issue certain types of insurance within the state.----------[ Back