What is the difference between direct and indirect insurance?

Direct insurance is a type of insurance policy that provides coverage directly to an individual. This means that the policyholder is the only person covered by the policy, and any claims they make must be paid out of their own pocket. Indirect insurance, on the other hand, provides coverage to a group of people, usually through an employer or trade association. This means that the premiums are collected from the group as a whole, and any claims made by any individual are shared by all members of the group. In Idaho, both direct and indirect insurance plans are available, although the types of coverage can vary. Direct insurance policies usually cover medical expenses, such as hospital stays and doctor visits. They can also provide coverage for property damage and personal liability. Indirect insurance plans usually provide additional benefits, such as disability, life or dental insurance. In Idaho, both direct and indirect insurance plans are regulated by the Department of Insurance. This means that all insurance providers must be licensed and must adhere to strict laws and regulations. It is important for consumers to understand the differences between direct and indirect insurance plans in order to make an informed decision when selecting coverage for themselves or their family.

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