What is the difference between direct and indirect insurance?

The difference between direct and indirect insurance is in the way that the policy is sold and the relationship between the policyholder and the insurer. Direct insurance is a policy that is sold directly from the insurer to the policyholder. The policyholder has a direct relationship with the insurer and thus pays the premiums directly to the insurer. Indirect insurance, on the other hand, is a policy that is sold by an agent or broker. The policyholder pays the premiums to the agent or broker who then pays the insurer. The policyholder has an indirect relationship with the insurer and usually relies on the agent or broker to answer any questions they have regarding their policy. In North Carolina, the state insurance department regulates and oversees the activities of agents, brokers and insurers. The insurance department sets certain standards for agents and brokers including being licensed, properly trained and registered with the state. It is also the responsibility of the insurance department to ensure that any policy sold in the state meets the regulations set by the state. In addition, the department is responsible for enforcing the regulations set by the state to protect consumers from any unfair policies or practices.

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What is the difference between direct and indirect insurance?

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