What does Binding Authority mean? Read on to discover the definition & meaning of the term Binding Authority - to help you better understand the language used in insurance policies.
A binding authority is an agreement in which an insurer gives full authority to an agent (typically an insurance broker) to act on their behalf for the purpose of underwriting. Once the agent has binding authority, they are legally allowed to sell policies on the insurer's behalf.
We hope the you have a better understanding of the meaning of Binding Authority.