FAQs
Captive agents sell insurance for one specific company. The one and only insurance company that they represent is typically a “name brand” company. You might even see their commercials during the Super Bowl. Independent agents, on the other hand, sell insurance for several different companies.
What are the 2 basic types of insurance? ›
The many types of insurance plans available today may be grouped into two groups :
- Life Insurance.
- General Insurance.
What are the 2 types of property insurance? ›
Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance. The three types of property insurance coverage are replacement cost, actual cash value, and extended replacement costs.
What are the 2 types of insurance companies? ›
Insurance companies are classified as either stock or mutual depending on the ownership structure of the organization. There are also some exceptions, such as Blue Cross/Blue Shield and fraternal groups which have yet a different structure.
What type of insurance agent makes the most money? ›
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
What are the differences between different types of agents? ›
People hire agents to perform tasks that they lack the time or expertise to do for themselves. A universal agent has wide authority to act on another's behalf, but a general agent or special agent has more limited and specific powers.
What are the 2 main types of life insurance? ›
For the most part, there are two types of life insurance plans - either term or permanent plans or some combination of the two. Life insurers offer various forms of term plans and traditional life policies as well as "interest sensitive" products which have become more prevalent since the 1980's .
What are the two categories of insurance customers? ›
Here are some of the key insurance customer types:
- Individual Consumers: This segment includes private individuals seeking insurance for personal needs. ...
- Families: Families often require a combination of insurance products to protect their members and assets.
What two types of insurance are mandatory? ›
Coverage Summary
- Bodily injury liability pays for bodily injury you cause someone else.
- Property damage liability pays for property damage you cause someone else.
- California law requires you to have this coverage.
What are the two main types of homeowners insurance? ›
What are the different types of homeowners insurance?
- Dwelling coverage is the basis for all homeowners insurance policies. ...
- Contents coverage protects items including furniture and clothing in your home.
HO-1 Basic Form Policy: The HO-1 policy is the most basic and limited homeowner insurance option. It provides coverage for a specific list of perils, such as fire, lightning, hail, theft, and vandalism.
What are two types of insurance premiums? ›
There are many different types of premiums about various insurance policies, including, but not limited to:
- Life. Life insurance premiums are determined by your personal information, including your age, health, and medical record. ...
- Health. ...
- Auto. ...
- Homeowners. ...
- Renters.
What are the two types of insurance agents? ›
There are two types of insurance agents:
- Captive agents typically represent only one specific insurance company.
- Independent insurance agents typically represent more than one insurer.
What are the two common categories of insurance? ›
Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto.
What are the two main sectors of the insurance industry? ›
There are three main insurance sectors: property/casualty (P/C), mainly auto, home and commercial insurance; life/annuity, mainly life insurance and annuity products; and private health insurance, written by insurers whose main business is health insurance. Life/annuity and P/C insurers can also write health coverage.
Which of the following are the two basic types of insurance plans? ›
For the most part, there are two types of life insurance plans - either term or permanent plans or some combination of the two. Life insurers offer various forms of term plans and traditional life policies as well as "interest sensitive" products which have become more prevalent since the 1980's .
What are the two types of insurance offered by the government? ›
A program run by U.S. federal, state, or local governments in which people have some or all of their health care costs paid for by the government. The two main types of public health insurance are Medicare and Medicaid.