WinsurTech Blog | Insurance Concepts and Practical Solutions

What is the difference between an Insurance Agency and an MGA?

Author - Webner

01/04/2022

4:49 am

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Post Views: 1,418

Insurance Agency:

An insurance agency, also known as an insurance agent, is an individual or company authorized by a carrier to sell the insurer’s products in exchange for commission or compensation. Insurance agencies or agents are regulated by the insurance laws of the country or state in which they work. Independent agents can sell or offer products from a variety of carriers, whereas captive agents only sell the products of the single insurer to the customers.

For example, ABC Insurance is an independent insurance agency. This agency has employed insurance agents to sell the insurance products of […]

What is the difference between an Insurance Broker and an MGA?

Author - Webner

12/30/2021

5:08 am

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Insurance

Post Views: 1,404

Insurance Broker:

An insurance broker is a mediator between the insurer and the customer. Insurance brokers are insurance experts who advise clients about their insurance needs and then interact with insurers on their behalf to get them the most suitable insurance.

Insurance brokers work on behalf of the client and will work with insurance companies throughout the market. They are not tied to one insurer and can therefore recommend products from any insurer.

Insurance brokers are compensated by the insurance companies, from whom they earn a commission for the business they place.

Many insurance brokers will have their […]

What does Income Loss mean in Insurance?

Author - Webner

12/28/2021

4:25 am

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Insurance

Post Views: 848

The term “loss of income” refers to a situation in which a person’s primary source of income for expenses or living expenses, such as a job wage or company income, is interrupted or their business fails. In this case, They have experienced a loss of income. Here, An Insurance can be able to cover this financial risk. They will be compensated by their insurer if they have taken insurance against this danger.

Loss of income insurance can assist the policyholder to pay off their debts and help even restart the company in case of business failure. Income protection insurance […]

NAIC (National Association of Insurance Commissioners)

Author - Webner

12/24/2021

4:46 am

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Insurance

Post Views: 799

The National Association of Insurance Commissioners is an organization that represents insurance commissioners across the country.
In the United States, as the insurance sector is very highly regulated, the National Association of Insurance Commissioners was founded in 1871. The U.S. standard-setting organization is governed by the chief insurance regulators from all over the country, including the 50 states, the District of Columbia, and five U.S. territories, to coordinate the regulation of multistate insurers. It is a nonprofit, nonpartisan organization. It provides the data, expertise, and analysis to the insurance commissioners to effectively regulate the industry […]

What is the difference between an Insurance Agency and a Brokerage firm?

Author - Webner

12/22/2021

4:42 am

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Insurance

Post Views: 729

Insurance agency

An insurance agency is a firm authorized to sell insurance products to the insured in exchange for compensation (commission) from a carrier. Insurance firm agents always work under the guidance of the state in which they work. Most insurance agencies are independent and sell products from different carriers, but there are some agencies that only sell the products of one insurer, so they are not able to compare prices and features of other products on the market. An insurance agent is paid a salary by the insurance business, as well as a commission or bonus based […]

Basic Structure of AL3 File

Author - Webner

12/15/2021

4:18 am

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Cloud, Insurance

Post Views: 736

Basic Structure of an AL3 file:

AL3 file includes two types of groups:

Transaction Groups: Carries data related to the transaction between the source and destination
Data groups: Carries the data of the policy.

Transaction Groups:

1MHG: The Message Header Control Group
This is the first group where the transaction starts indicating the logical start of the message. This group includes the address of the sender and receiver (Agency-Company) of the message along with the message text carrying the instruction of what to follow to receive the message and […]

What kind of data is collected and coverage is provided in inland marine personal insurance?

Author - Webner

12/13/2021

4:16 am

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Insurance

Post Views: 772

Overview

Personal inland marine insurance protects personal property that may not be covered under the traditional homeowners’ insurance policy due to the various exclusions and limitations on homeowners’ coverage. Personal Inland Marine Insurance can provide you with added protection for your valuable property, whether it is in transit or at your insured location.

The Property that can be Insured under Inland marine Insurance:

The property value must be high.
The property must be portable.

The personal Inland marine insurance protects your valuables such as:

Jewellery
Fur coats,
Antique furniture: Under antique furniture, we have […]

Collision Coverage

Author - Webner

12/07/2021

4:33 am

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Insurance

Post Views: 683

Introduction

Collision coverage is a type of automobile coverage that pays for the repair or replacement of a vehicle in case of an accident caused by a collision with another vehicle or object such as a tree, fence, or pole. This coverage also covers the damages in case the vehicle flips or rolls. Collision coverage also covers the damages under a hit and run case or if there is a collision where no one is at fault. Damage caused to a vehicle by potholes is also covered under this coverage. The damages are paid up to the limit […]

Vicarious liability

Author - Webner

12/03/2021

4:44 am

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Insurance

Post Views: 662

When you or your company is held financially liable for the activities of another group or person, this is known as vicarious liability. This is the legal structure that is most usually used when you are accused of mistakes committed by your contractors, employees, or agents.

What is Vicarious liability?

Vicarious liability means that you can be held legally responsible for another person’s crime, much as living vicariously through someone else involves taking joy in another person’s adventures. Because of the way certain legal relationships work, this is feasible.

Consider the following scenario: one of your […]

How to open ACORD AL3 files

Author - Webner

11/25/2021

4:32 am

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ACORD AL3

Post Views: 1,038

What is AL3?

AL3 is one of the P&C standards created by ACORD. This standard was developed in the early 1980s. AL3 is designed as a batch communication method for policy and commission data. Data dictionaries and supporting documentation of AL3 standards are stored in the Access database maintained by ACORD. This database is mainly updated every 6 months with new variations and changes.

AL3 standard is widely used across the Insurance industry of the USA for property and casualty data transmission. As per ACORD, more than 500 companies are using this standard.

ACORD AL3 Library […]

Intentional Act

Author - Webner

11/23/2021

4:38 am

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Insurance

Post Views: 592

As the name implies, intentional acts are those acts that you intend to perform. For example, if you swing a fist at someone during a fight it would be an intentional act. Your fist does not accidentally swing towards someone’s face, but it’s intentional and you do the swing knowing that it will cause harm to another person. Thus, it is an intentional act for the purpose of causing harm and knowing that it’s a deliberate act.

Any time a party acts with the intention to cause direct harm to another party, the law categorizes that act […]

Bodily Injury Liability in Personal Lines policies

Author - Webner

11/18/2021

4:41 am

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Insurance

Post Views: 619

What is Bodily Injury Liability and in which AL3 group its details can be found in Personal Lines policies?

Introduction to Bodily Injury coverage:

If you get into a car accident and injure another person, bodily injury liability covers the expenses involved in treating that person. This insurance coverage pays the hospital bills and the lost income of the individual as a result of the accident. In case, if the injured person sues you for the accident, It will also cover the legal fees for that.

Bodily injury coverage is subject to a limit, which is […]