Binding Authority Agreement framework governs MGA underwriting, claims handling, and referral limits for foreign insurers.

A Managing General Agent may not solicit business, underwrite risks or settle claims for a foreign insurer unless a Binding Authority Agreement is executed and submitted to the Competent Authority. The agreement must define business classes, territorial and liability limits, underwriting guidelines, allocated capacity, and termination or suspension rights. It must also separate Claims Processing from Claims Settlement and require referral of claims exceeding the stated threshold or involving a coverage dispute to the foreign insurer for prior approval.

---

---

---