The right to provide services on a cross-border basis within the European Union (EU). The essential feature so far as the provision of insurance is concerned is that the contract is made in an EU member state which is different from the member state where the risk is located (see European Union/European Economic Area risk). It therefore covers open market business (with or without the involvement of a local intermediary) and business that is written under any binding authority where the local coverholder does not have authority to enter into contracts of insurance without first consulting the managing agent that granted the binding authority.
