A legal source that a judge must assess when making a decision in a case. For example, the laws of the same state where a case is being tried or the decisions of higher courts are a binding authority for a judge. (d) verification. The franchise board also has audit powers. If such audit powers are exercised, a Lloyd`s broker, whether as a hedging broker or as a sponsor or as a party that organises, breaches or is a party to a binding authority agreement , may be required to provide documents or other information to the franchise board and participate before the franchise board. A binding authority is an agreement in which the “cover holder”, often a broker, but sometimes a underwriting agency, has the right, in accordance with the terms of the supervisory authority, to accept risks on behalf of an insurer and to issue documents proving the insurance without the need for further authorisation on behalf of the insurer. Cover agreements are an essential part of the London insurance market (it is estimated that Lloyd`s has more than 5,000 such agreements). These agreements also aim to modernise Lloyd`s business practices – all mandatory investment vouchers must comply with the standards of the London Market Principles from the beginning of 200 – but are clearly intended to protect the “Lloyd`s brand” and protect the public. – it supports the request and is ready to manage the relevant binding authority, there may be an additional agreement under which the holder of the cover earns further commissions depending on the profitability of the Authority, which is called the profit commission. (ii) no policyholder may conclude an insurance contract on the basis of a binding authority unless all the conditions referred to in point (i) are fulfilled or a binding authority has been registered; and, under this Agreement, the managing agent delegates to the cover holder his or her authority to enter into an insurance contract taken out by the members of a syndicate he manages, in accordance with the terms of the agreement.
. . .