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Insurers terms
GEICO, State Farm, Progressive and the companies behind the policies.
Captive agentAn insurance agent who sells policies for only one company or insurance group, rather than comparing several insurers for you.Direct writerAn insurer that sells its own policies without independent agents; in everyday use, a company that sells online and by phone.Independent agentAn insurance agent who represents several insurers and can quote and place your policy with whichever one fits your needs best.Mutual insurance companyAn insurer owned by its policyholders rather than by shareholders, which can return surplus to members as dividends or lower rates.Reciprocal insurance exchangeA policyholder-owned insurer in which members, called subscribers, insure one another through a manager known as an attorney-in-fact.Stock insurance companyAn insurer owned by shareholders, who receive its profits, rather than by its policyholders; many are publicly traded.County mutual insurance companyA Texas insurer type, exempt from many state insurance laws, that many auto insurers use to issue their Texas policies.Fronting carrierA licensed insurer that issues policies under its own name for another company and passes most of the risk to that company through reinsurance.Managing general agentA specialized agency with authority to underwrite, price and often handle claims for an insurer, which carries the risk and issues the policies.Nonstandard auto insuranceCoverage sold to drivers that standard insurers decline or price steeply, such as those with DUIs, many tickets, lapses or little license history.Admitted insurerAn insurance company licensed by a state's insurance department, which regulates its rates and forms and backs its claims through the state guaranty fund.AM Best ratingA letter grade from rating agency AM Best on an insurer's ability to pay claims, running from A++ (Superior) down to D (Poor).Guaranty fundA state safety net, funded by assessments on other insurers, that pays covered claims when a licensed insurance company goes insolvent.NAIC complaint indexA score comparing an insurer's share of consumer complaints with its share of premiums; 1.00 is the national baseline and lower is better.