A facility under which the underwriters delegate authority to accept a pre-determined share of certain coinsured risks on their behalf. The authority may be exercised by the leading underwriter on behalf of the following underwriters; or it may extend to the broker or some other agent being authorized to act for all the underwriters.
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UK: Arrangement whereby underwriters or companies and a broker agree, for a specified type of risk, that the broker only needs to approach the leading and second underwriter who accept or reject each risk on behalf of all the underwriters concerned in their agreed proportions. This is used when a broker places a large number of similar risks with the same group of underwriters.