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The cost associated with marketing and writing new INSURANCE business, generally comprised of AGENT commissions, UNDERWRITING expenses, fees, and marketing support costs. A portion of these costs may be charged back to INSUREDS through EXPENSE LOADING. ACTIVE INVESTMENT STRATEGY A process of dynamically managing a PORTFOLIO of securities by analyzing the RISK factors that influence each ASSET class (such as INTEREST RATES, interest rate VOLATILITY, CREDIT SPREADS, FOREIGN EXCHANGE RATES, and corporate earnings) and allocating CAPITAL to those where risk and return appear attractive. An active strategy may require frequent rebalancing. See also INDEXING, PASSIVE INVESTMENT STRATEGY.ACTUAL AUTHORITY Powers granted by a PRINCIPAL to an AGENT to deal on its behalf. Actual authority may be explicit or implicit, and actions taken by the agent are generally binding on the principal. Also known as EXPRESS AUTHORITY.