Agency Partners

Agency PartnersSeveral thousand insurance carriers offer their services in the United Stated, Canada and the service of many foreign insurers is also available to American buyers of insurance. There is no state in which all carriers are licensed, but it is not unusual for several hundred or a thousand to be authorized to do business in a particular state.  Thus, an insurance producer who is considering which companies he should represent is confronted with bewildering array of carriers from which to choose. 

In order to make the best possible choice among those available, a producer must have some familiarity with the nature of insurance carriers and the characteristics which distinguish a good company from one of lesser quality.  Those carriers offering insurance in the United States may be classified as either (1) proprietary, (2) mutual, or (3) reciprocal.  Proprietary companies are owned by one group to provide insurance to another group.  This category includes stock companies, Lloyd's of London and Lloyd's Associations.  Mutuals and Reciprocals, on the other hand, are said by their organizers to be formed to provide members insurance at cost.  There are several types of mutuals, including assessment, advance premium, factory, perpetual and faternal.

 

Acceleration Clause - The part of a contract that says when a loan may be declared due and payable.

Accidental Death Benefit - In a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. There can be certain exclusions as well as time and age limits.

Acknowledgment: the act of going before a qualified officer (e.g., Clerk) and declaring the validity of the document. The officer certifies same, whose certification is known as the acknowledgment

Acquit: the act of freeing a person from the charge of an offense by means of a decision, verdict or other legal process; to discharge