What is the difference between direct and indirect insurance?

In Iowa, the difference between direct and indirect insurance is based on how a person obtains insurance. Direct insurance means a person has purchased insurance directly from an insurance company, such as through an agent or broker. On the other hand, indirect insurance is when a person obtains insurance through another source like their employer or financial institution. Direct insurance is purchased directly by the insurance company, and the person pays a premium for the coverage. The policyholder is responsible for the full amount of the premium, and it is paid directly to the insurance company. This type of insurance is generally more affordable since there are no additional costs associated with the purchase of the insurance. Indirect insurance, on the other hand, is when a person obtains insurance through another source. In this case, the insurance company pays a premium to the source who then pays a portion of the premium to the policyholder. The policyholder is then responsible for the remainder of the premium. The premiums are generally higher than direct insurance since more costs are associated with the purchase. In sum, the main difference between direct and indirect insurance in Iowa is how a person obtains the insurance. Direct insurance is purchased directly from the insurance company, while indirect insurance is obtained through another source. Direct insurance usually has lower premiums since there are no additional costs associated with the purchase. Indirect insurance is more expensive since more costs are associated with the purchase.

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What is the difference between direct and indirect insurance?

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