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Insurance Broker Training 101: Common Types of Insurance Companies
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Posted On :
Dec-09-2011
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Article Word Count :
564
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This article is about insurance broker trainig
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Most people are familiar with the most common types of insurance policies such as health insurance, car insurance, and home insurance. But for the majority of people who have not taken an insurance broker training program would be not familiar with the different types of insurance companies.
There are a lot of insurance companies around the country that sells different types of insurance policies and plans. There are even more insurance brokers that carry these companies’ products and services. They may offer the same insurance packages or policy but may differ in many legal terms, reach and territory.
Though they may seem all alike, in terms of services and plans offered, these insurance companies differ in legal structure and in the legality of their reach. Knowing the different types of insurance companies is a must for every would-be insurance broker. This information is valuable especially if they want to apply as an insurance broker or agent in one of the top insurance companies or if he wants to start his own insurance brokerage company. Going to an insurance broker training program can help you out on the details of every type of insurance plans and insurance companies. But to give you a rundown, here are the insurance company types in the United States:
Domestic Insurance Companies
Domestic insurance companies are companies that are allowed only to operate and sell insurance policies in the State that they are registered in. They are not allowed to sell insurance in other States. If a company has a domestic permit in Texas, he is treated as a foreign insurance company in California, and cannot do business in that State unless he applies for a permit.
Foreign Insurance Companies
Unlike domestic insurance companies, foreign insurance companies can do business in and out of its home State. All they need is to register and apply for an insurance license in the States that they want to operate.
Alien Insurance Companies
Do not be confused by foreign insurance companies and Alien Insurance companies. Alien insurance companies are companies that originated and have their base of operations overseas but are doing some of their business and functions in the United States.
Authorized and Unauthorized
Authorized and Unauthorized insurance companies can also be called Admitted and Unedited insurance companies. An insurance company becomes an Authorized insurance company once he has received his permit or an authorization from the State Insurance Department or Division. Companies without said certification are classified as unauthorized insurance companies. People are advised to deal only with Authorized insurance companies as unauthorized companies can be just a front to fool people.
Stock Company
These insurance companies are owned by stockholders.
Mutual Insurance Company
Mutual insurance companies on the other hand are companies that are owned by the people or businesses that they insure.
It is a must for every insurance broker to know what type of insurance company they represent and the insurance products that they carry. They must know these things for their products may not be valid in his preferred territory, or what he is representing is not authorized in his State. Some of these nuances and specifications can be learned during the insurance broker training that an insurance broker has undergone.
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Article Source :
http://www.articleseen.com/Article_Insurance Broker Training 101: Common Types of Insurance Companies_116576.aspx
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Author Resource :
The author offers freight broker training, Insurance broker training and stock broker training advice. This training helps you in gaining knowledge in respective field and starting your own venture successfully. Through this article the author provides brokerage definition to common man.
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Keywords :
Insurance broker training,
Category :
Finance
:
Insurance
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