Delegated authority schemes are also typically referred to as:

Delegated authority schemes are commonly referred to as binders because this term specifically describes arrangements where insurers grant authority to intermediaries or other third parties to enter into contracts of insurance on their behalf. A binder serves as a temporary contract that details the insurance coverage offered and sets out the terms under which the intermediary can bind insurance coverage for clients without the insurer needing to review each individual policy beforehand.

This nomenclature reflects the nature of the arrangement in which the intermediary is essentially 'binding' the insurer to the insurance agreements as outlined in the binder contract. The term denotes a level of authority and trust placed in the intermediary while still being subject to the terms set by the insurer. Binders facilitate efficiency in the insurance process by allowing outlined transactions to occur more fluidly. Other terms like substituted underwriting, books, and portfolios do not specifically capture the essence of delegated authority schemes in the same way a binder does.