What does Draft Authority mean? Read on to discover the definition & meaning of the term Draft Authority - to help you better understand the language used in insurance policies.
Some insurers will grant authority to some agents to issue claim drafts on their behalf. This is most commonly done with personal lines coverages not involving liability (e.g., auto physical damage and damage to insured property under homeowners policies). Draft authority is usually limited to small amounts ($2,500 or less).
We hope the you have a better understanding of the meaning of Draft Authority.