An agreement between a Lloyd’s managing agent and a coverholder under which the Lloyd’s managing agent delegates its authority to enter into a contract or contracts of insurance to be underwritten by the members of a syndicate.
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UK: An agreement whereby an insurer or reinsurer delegates underwriting authority to another party known as a coverholder, usually a broker or underwriting agent. Binding authorities assume a particular importance at Lloyd’s as a means of enabling coverholders at home and abroad to accept risks for syndicates while circumventing the rule about business only in the Room. Regulations at Lloyd’s lay down procedures for the registration of binding authorities and the approval of coverholders.
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An authority given by an insurer to an agent to accept risks on the insurer’s behalf.
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The authority extended to an agent by an insurer to provide insurance, usually on a temporary basis, until a policy can be written.