An insurance agent who deals with retail agents and not directly with individual insureds. The wholesale agent serves as an intermediary between the retail agent and the insurer.
Insurance Encyclopedia
Wholesale broker
A broker who places risks with Lloyd’s or with insurance companies on behalf of other brokers, i.e. subbrokers who are customer-facing and therefore, unlike the wholesaler, subject to ICOB rules. Wholesale brokers normally attract business as they are able to secure better policy terms and conditions than the sub-brokers. Wholesale brokers who are Lloyds-accredited provide a route to the Lloyd’s market for other brokers and may operate under binding authorities.
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A type of insurance broker who acts as an intermediary between a retail broker and an insurer, while having no contact with the insured. Wholesale agents place business brought to them by retail agents. Unlike a retail broker, wholesale brokers have direct contact with the insurer, whereas the retail agent who produced the business does not. The same broker can function as a retailer or wholesaler, depending on the specific situation. Wholesale brokers often possess specialized expertise in a particular line of coverage or in a line of coverage that is unusual and/or have greater access to or influence with certain insurance markets, which is especially valuable when dealing with a difficult-to-place risk. There are two types of wholesale brokers managing general agents and surplus lines brokers. The latter work with the retail agent and the insurer to obtain coverage for the insured but unlike a managing general agent, a surplus lines broker does not have binding authority from the insurer.
Wholesale life insurance
Type of term life insurance for a small group employed by the same company. Each employee applies for, is given a special rate, and owns his or her own policy. Also called franchise, blanket , or employee life plan or wholesale plan .
Wholesaling
System of marketing in which an insurance company allows a product to be sold by a third party, which adds its own commission and fees and resells the product to its clients.
wide area network (WAN)
Interconnected computers that cover a large geographical area (e.g., America Online).
Widow’s/widower’s guaranteed minimum pension (WGMP)
A contracted out occupational pension scheme must pay at least this amount in pension benefits to the surviving spouse of a member who dies. This applies for any benefits earned pre-April 1997. WGMP does not apply to a scheme that has contracted out under protected rights rules.
Widow/Widowers benefit
A benefit provided for the surviving spouse of a now deceased worker. This is provided by social security.
Wilful blindness
The ignorance which occurs when a person deliberately and wilfully refrains from inquiring into a situation or deliberately disregards a situation in the hope of profiting from it. It applies to assignees for value who seek to gain advantage by giving notice of an assignment under the Policies of Assurances Act 1867 ahead of previous assignees they know or suspect to exist who have not yet given notification. This conduct is not permitted as a means of an assignee gaining priority.
Will (Estate)
A plan created by an individual to indicate how he or she wants assets disposed at the time of death. This document is enforceable in court.
Will Ride
Coverage that remains in effect regardless of the geographical location in which a loss occurs.