American Agency System
Definition of "American agency system"
Marketing of insurance through independent agents; also called independent agency system. Independent agents usually represent several insurance companies and try to insure the risk according to availability of coverage and most favorable price. Independent agents are paid a commission in the form of a percentage of the premiums generated by the policy sold. They own all the records of the policies sold and have the right to solicit renewals. They are not restricted to maintaining business with just one company and can transfer the business upon renewal to another company.
Popular Insurance Terms
Professional designation conferred by the International Board of Standards and Practices for Certified Financial Planners. In addition to professional business experience in financial ...
Certificate of insurance required by law under the auspices of the Interstate Commerce Commission. The endorsement is attached to all inland marine policies issued to interstate motor ...
Total number of insurance policies underwritten and issued by the insurance company that uses the same policy forms and rates. ...
All sources of cash flow, usually stated on an annual basis. ...
Liability insurance coverage, primarily for shipyards for ocean marine risks, provided in much the same manner as umbrella liability insurance for nonmarine risks. Coverages may be provided ...
Individual or organization that is a potential purchaser of an insurance product. ...
Annuity payments that continue for the life of the annuitant; should the annuitant not survive a stated period, the payments are then made to a beneficiary until the stated period ends. ...
Statement regarding an insured's retention of low-severity risks because they are not catastrophic, and can be absorbed without having a dramatic effect on the financial structure of a ...
Form of stock ownership that permits the stockholder to select a beneficiary to receive the stock upon the death of the stockholder. The stockholder retains all rights of stock ownership ...
Have a question or comment?
We're here to help.