Alyssa Lane
An insurance carrier is the company that provides your insurance coverage. In other words, it's an insurance company. The terms insurer, carrier, and insurance company are used interchangeably. Insurance carriers employ insurance agents, who handle your claims and may help set up your payments. You can file an insurance claim with your agent or directly with your carrier. You can find your insurance carrier's information on your declarations page, insurance cards, or by calling your agent.
| Characteristics | Values |
|---|---|
| Definition | A carrier is another name for an insurance company. |
| Synonyms | Insurer, insurance company, insurance provider |
| Description | The company that provides your insurance coverage, underwrites your policy, and processes and pays out your claims. |
| Employees | Insurance agents, who handle your claims and may help set up your payments. |
| Where to Find | Declaration page, proof of insurance, or by calling your agent. |
What You'll Learn
Insurance carrier vs insurance provider
An insurance carrier is the company that provides your insurance coverage. It employs your insurance agent, who handles your claims and may help set up your payments. The terms "insurer", "carrier", and "insurance company" are generally used interchangeably.
You can file an insurance claim with your agent or directly with your carrier in most cases. You can find your insurance carrier's information on your declarations page, insurance cards, or by calling your agent.
While an agent or broker will sell you an insurance policy, an insurance carrier may have one or more central offices for handling claims. Agents will often work in smaller offices in places where the carrier offers coverage. After you choose your coverage options with your agent, they will send your policy to your carrier for underwriting. Then, they will help set up your premium payments. When you receive a payout for your loss, it will come from your insurance carrier.
An insurance agency, sometimes called an insurance agent, is an individual or company authorized by a carrier to sell the insurer's products in exchange for compensation. Agents are regulated by the laws of the state in which they work. Independent agents typically offer products from a variety of carriers, whereas captive or exclusive agents only sell the products of one insurer.
A single insurance carrier can only offer their own products, whether that be life coverage, property and casualty, liability, health, commercial policies, or workers' compensation. An agency, on the other hand, can offer insurance coverage from many different carriers. This allows your agent to shop around for the best coverage at the lowest price.
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Insurance carrier, insurance company, and insurance provider
An insurance carrier is a company that creates and manages insurance policies and is typically the financial resource behind them. They are responsible for underwriting insurance plans and issuing payments for claims. The terms "insurance company" and "insurer" are interchangeable with "insurance carrier".
Insurance carriers employ insurance agents who handle customers' claims and may help set up premium payments on behalf of the carrier. While an agent or broker will sell an insurance policy, the carrier may have one or more central offices for handling claims. Agents often work in smaller offices in the areas where the carrier offers coverage.
Insurance carriers are also known as insurance providers. However, the term "provider" is sometimes used to refer to hospitals and doctors who provide healthcare services. So, if you are using the term "provider" to mean insurer, it is best to clarify by saying "insurance provider".
It is important to know the name of your insurance carrier and to research their reputation and financial health before signing up for a policy. You can find your insurance carrier's information on your declarations page, insurance cards, or by calling your agent.
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How to find your insurance carrier's information
An insurance carrier is another name for an insurance company. It is the company that provides your insurance coverage and employs your insurance agent, who handles your claims and may help set up your payments.
- Declarations page: The papers you receive from the company outline the details of your coverage, limits, and other policy information.
- Proof of insurance: The cards your carrier sends to you are used to confirm that you are covered.
- Contact your agent: Your insurance agent will be able to provide any information you need about your carrier. They can also help you through the details of your policy and claims.
- Company profile: If you know the name of the insurance company, you can search for it by using a partial or full company name to access its profile. From there, you can find information about the company's location, former names, reference information, license status, company type, and complaint history.
- Police report: In the case of a car accident, you can request help from the police, who will create a report with details of the incident such as the date, time, and vehicle damage. You can then obtain the police report number to file a claim.
- DMV: If you are involved in a car accident and the other party refuses to exchange insurance information, you can visit your local DMV to find the other driver's insurance information.
- InsurTech Contacts: You can also contact your state's insurance department website or the insurance department where you live to confirm the company or HMO is licensed and obtain information on other licensed companies or HMOs in your state.
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What is an admitted insurance carrier?
An "admitted" insurance provider has been approved by a state's Department of Insurance (DOI) and is backed by the state. This means that the insurance company complies with the regulations set by the state's DOI or insurance commissioners. The state verifies that the carrier's insurance policy forms, rates, and requirements adhere to state insurance laws and regulations before allowing it to sell in that state. Admitted insurance companies are also licensed by the State Department of Insurance or insurance commissioners where they operate.
The process of getting an admitted insurance product approved is usually long and complex. The insurance product must be filed with the state's insurance commissioner and comply with the insurance requirements prescribed by its Department of Insurance. Once approved, a percentage of the annual income earned from selling the product is paid to the state's insurance guaranty association.
One of the main benefits of buying insurance from an admitted insurance carrier is that you don't have to pay certain fees or taxes on your policy because the company follows regulations, so these expenses are unnecessary. Additionally, if the admitted insurance company fails, the state's insurance fund will step in and make payments on claims if needed, guaranteeing coverage. Admitted insurance policyholders also have the right to appeal to the state insurance department if they believe their claim was mishandled.
It's important to note that the classification of admitted and non-admitted refers to the insurance product itself and not the carrier. Admitted insurance products are backed by the state's guaranty fund in the event of the carrier's insolvency, providing an extra layer of protection for policyholders.
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What is a non-admitted insurance carrier?
A non-admitted insurance carrier is one that has not been approved by a state's Department of Insurance (DOI) or insurance commissioner. Non-admitted insurance carriers are also known as excess and surplus (E&S) line carriers or surplus line insurers.
Non-admitted insurance carriers are not backed by the state, meaning they don't necessarily comply with state insurance laws and regulations. As a result, if a non-admitted insurance company becomes insolvent, there is no guarantee that claims will be paid, even if the policy is active. Policyholders are also unable to appeal to the state DOI if they believe their case was handled improperly.
Non-admitted insurance carriers are regulated by the state surplus lines office, which has less strict regulations than the DOI. This means that non-admitted carriers have more flexibility in terms of selling insurance policies, pricing, and products. They can insure complicated, specific risks that standard insurance markets won't cover, such as property damage from natural disasters in areas prone to hurricanes or wildfires. They can also get creative with their policies, insuring things like celebrity body parts or expensive equipment.
Non-admitted insurance carriers are not unregulated. Many states require them to submit information such as articles of incorporation, principal information, and solvency verification. Non-admitted insurance can only be sold by agents with a specific license, such as a surplus lines broker or excess lines broker.
While purchasing insurance from a non-admitted carrier may seem riskier due to the lack of state backing, non-admitted status is just one factor in gauging financial reliability. Insurance companies receive financial strength ratings from credit rating firms, and a non-admitted carrier with a high rating is likely a safe choice.
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Frequently asked questions
A carrier address for insurance is the address of the company that provides your insurance coverage. This can be found on your declarations page, insurance cards, or by calling your insurance agent.
Insurance carrier, insurance company, and insurance provider are interchangeable terms. They refer to the organisation that will underwrite your policy and process your claims.
You can find the carrier address for your insurance company on your insurance cards, declarations page, or by calling your insurance agent.
An insurance carrier is the company that provides your insurance coverage, while an insurance agency or agent is a company or individual that is state-licensed and authorised to sell a particular carrier's insurance policies.
