What is the difference between direct and indirect insurance?

Direct insurance is a type of insurance which involves a direct contract between an insurer and an insured. In direct insurance, the insurer agrees to provide a certain amount of coverage in exchange for a premium payment. This type of insurance is different from indirect insurance in that it is not provided through a third-party. Indirect insurance is a type of insurance which involves a third-party as a go-between between the insured and the insurer. In indirect insurance, the insurer agrees to provide coverage through a broker or agent who will take on the role of representing the insured. The broker or agent will make sure that the insured pays the correct amount of premium and will negotiate the best coverage available with the insurer. In New Mexico, both direct and indirect insurance are regulated by the state and are subject to the same regulations and standards. This means that regardless of how the insurance is provided, the insured will be able to receive the same amount of coverage and the insurer will be legally obligated to provide that coverage.

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