Insurance is an industry. Even though it would be nice if the companies kept their rates the same all the time, the truth is that they need to make enough money to pay for all of the claims that their policyholders might make.
A company must adjust their rates in order to make money when they compare the amount they received in premiums to the amount they paid in claims at the end of the year.
The insurance company’s past performance serves as the basis for underwriting adjustments and rate increases or decreases.
You might deal with a captive agent depending on which company you buy it from. They only deal with one insurance provider. A merchant offers protection from many organizations.
When you buy insurance, the agents and brokers who represent the insurance company are the first people you deal with. They’ll talk about the different kinds of products they have.
Only one insurance company is represented by the captive agent. They an acquainted with that organization’s items or contributions, yet can not talk towards other organizations’ strategies, evaluating, or item contributions.
