In property/casualty insurance, an agent who has this authority can create a contract between the insurance company and the insured.Two factors influence the granting of such authority.First, some companies prefer to have underwriting decisions made by specialists in the underwriting department, so they do not this binding authority to the agent.Second, some policies are cancelable; others are not.The underwriting errors of an agent with this authority may be corrected by cancellation if the policy is cancelable.Identify this authority.
A)Waiver authority
B)Binding authority
C)Facultative authority
D)Estoppel authority
E)Duress authority

Question

Quizplus · Accepted Answer

Binding authority allows an agent to create a contract between the insurance company and the insured, directly impacting underwriting decisions and policy cancellations.

In Property/casualty Insurance, an Agent Who Has This Authority Can