Definition:Delegated underwriting authority (DUA): Difference between revisions

🔑 '''Delegated underwriting authority (DUA)''' is a formal arrangement in which an insurance or reinsurance carrier grants an external party — typically a managing general agent, coverholder, or program administrator — the power to underwrite risks and bind policies on the carrier's behalf. The delegation is governed by a written agreement that precisely defines which classes of business, coverage limits, territories, and pricing guidelines the delegate may operate within. It is one of the most consequential decisions a carrier makes, because the delegate's actions create direct financial obligations on the carrier's balance sheet.