A retailer of insurance who, by contractual arrangement with a number of insurance companies, sells and services property and liability insurance. The independent agent owns the policy information and expiration dates of his client’s coverage and thus controls renewals and their placement.
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Agents who work as independent contractors within the framework of the independent agency system.
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US: an independent business person who usually represents two or more insurance companies in a sales and service capacity and who is paid on a commission basis.
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MEDICAL,USA: Self-employed insurance company representative who may represent two or more insurance companies and is paid on a commission basis.
Insurance Encyclopedia
Independent contractor
A person hired to work for a contracted time. The independent contractor is not considered an employee.
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One who undertakes to perform certain results for another by his own method and in his own manner, being responsible only for results and not being subject to the directions of the other party with respect to details of work.
independent contractor (IC)
Individual who agrees to work under a negotiated contract (written or verbal) but is not under the control or an employee of the person or company with which the contract is made.
independent diagnotic testing facility (IDTF)
Medicare provider or supplier that furnishes diagnostic tests such as a physician, group of physicians, or laboratory. Also called testing facility .
Independent financial adviser (IFA)
Adviser able to offer a full range of products from financial services companies or from a selected panel on grounds of merit. IFAs may work on their own account or for firms. Key principles they must follow include: ‘know their client’ by means of a fact find to form a comprehensive view of the client’s needs in order to offer ‘best advice’. IFAs can be remunerated by commission and/or fees. He must give full details at the outset of fees and, under the FSA’s disclosure rules, full details of any commission they will receive on recommended transactions. Regulated by the FSA, they must contribute to an industry wide compensation scheme.
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an intermediary who provides potential investors and policy holders with advice on a range of products from different companies (contrast tied agent).
Independent Insurance Agents of America (IIAA)
An association of insurance agents who are independent contractors and represent one or more insurers. Sometimes referred to as the Big I.
Independent Insurer
Insurer who does not rely on a rating bureau or other advisory service in establishing premium rates or the wording of its Insurance contract but, rather, itself performs these and other functions.
Independent laboratory
Freestanding clinical laboratory that meets conditions for participation in the Medicare program and bills through a carrier. It is not connected with a hospital, clinic, or physician’s office. It is certified to perform diagnostic and/or clinical tests independent of an institution or a physician’s office.
Independent Liability
The liability of an Insurer for losses assuming that he was the only Insurer covering such losses.
Independent Liability Method
A method of allocating a claim covered by two or more insurance policies. Each insurer’s liability is calculated independently, and each insurer contributes in proportion to the amount of his liability as determined.
UK Version: When a claim arises, insurers contribute ‘rateably’ to the loss. The independent liability method calculates each insurer’s liability as if the other policy did not exist. The insurers then calculate their contribution to the loss in proportion to their individual liabilities, particularly in liability insurance and non-concurrent policies. Example: The policy of liability insurer A limits liability to £1 million, while the policy of liability insurer B limits liability to £0.5 million. The total loss is £200,000. Each insurer is individually liable for £200,000 and thus contributes £100,000 (50%) to the loss. Insurer B would benefit from the maximum liability (or pro rata) method, which apportions claims in proportion to indemnity limits or sums insured (2:1 in this case), implying that A would pay £100,000 and B would pay £50,000.