Binding authority in specialty insurance
The contract that translates carrier appetite into delegated underwriting permission.
A binding authority permits a coverholder or MGA to accept risks and bind insurance within defined parameters on behalf of a risk carrier.
What the contract covers
Terms address scope, limits, exclusions, premiums, documentation, claims roles, reporting, audit, compliance and termination.
Referrals protect boundaries
Risks outside agreed parameters are referred to the carrier or managing agent. Referral discipline is a central measure of control quality.
Operationalize the binder
Rules should be embedded into rating, workflow and exception management so compliance can be demonstrated from records rather than reconstructed later.
Use the structure to ask better questions.
The label is only a starting point. Authority, economics, risk ownership, data rights and governance determine how an arrangement works in practice. Decision-makers should test the underlying evidence and contract rather than infer quality from terminology alone.
This guide provides a high-level educational overview. Market terminology and legal obligations vary by jurisdiction and agreement. MGA Index updates reference pages when material market practice changes.
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