From the 2016 accounting year, supervisors may conclude binding authorisation agreements for a maximum period of 36 months (“multiannual mandatory authorities”) Where a Lloyd`s Managing agent delegates his or her power to an authorised holder under a binding authority, the authorised policyholder may conclude insurance contracts and issue insurance documents to attest to the acceptance of insurance contracts. As a general rule, an approved holder may also collect premiums and may process claims or perform other duties. The scope of its powers is defined in the Treaty, known as the Binding Authority Agreement. The conditions of a binding authority define the scope of a policyholder`s obligations.