What does Power of Attorney mean? Read on to discover the definition & meaning of the term Power of Attorney - to help you better understand the language used in insurance policies.
Power of Attorney
Power of attorney is a legal document that designates an individual to act on the behalf of another. It gives the appointee, known as an agent or attorney-in-fact, broad or limited legal authority to handle the affairs of the principal, or person who signs the document. Individuals typically give another power of attorney in case they become seriously ill or disabled or cannot be present to sign legal documents as needed. In terms of insurance, the insurer may want power of attorney from the insured to complete the necessary transactions in the event of a loss.
We hope the you have a better understanding of the meaning of Power of Attorney.