Draft authority

{
  "id": "MLC-T-INS-001220",
  "term": "Draft authority",
  "field": "Insurance and risk management",
  "definition": "The power granted to an agent or third-party administrator by an insurer to issue claim payments directly, up to a specified monetary limit, without requiring prior approval from the insurer. This delegation of authority accelerates the claims settlement process for smaller, routine losses. The limits for draft authority are typically outlined in the agency agreement or service contract.",
  "url": "https://mlchart.com/terminology/insurance/draft-authority/"
}