Document background
The Binding Authority Agreement is a crucial document in the Nigerian insurance market that establishes the framework for delegated underwriting arrangements. It is used when an insurance company wishes to authorize a coverholder to underwrite insurance business on its behalf, subject to specific terms, conditions, and limitations. The agreement must comply with Nigerian insurance regulations, particularly those set by NAICOM, and includes detailed provisions on authority limits, compliance requirements, reporting obligations, and operational procedures. This document is essential for managing delegated authority relationships in the Nigerian insurance sector and typically requires regulatory notification or approval. It should address all aspects of the delegation arrangement, including risk management, financial controls, and regulatory compliance mechanisms.
