What is the term for a relationship of delegated authority?

• A. Mandate
• B. Delegation
• C. Commission
• D. Agency

Answer: (D)

The relationship described is agency—the arrangement where one party (the agent) is authorized to act on behalf of another party (the principal) in dealings with third parties. This captures the idea of delegated authority as an ongoing, formal relationship, not just a one-time act. Delegation refers to the act of giving that authority, not the relationship itself, while a mandate is a directive and a commission relates to pay or a group of people, not the binding relationship. In insurance and financial services, an insurer appoints an agent to act in its name, binding the insurer within the scope of that appointment. So the term that best describes a relationship of delegated authority is agency.