What is the difference between direct and indirect insurance?

Direct insurance and indirect insurance are two types of insurance that are regulated and managed differently in Washington. Direct insurance is insurance purchased from an insurance company, who then provides the customer with a policy to cover their specific risk. This type of insurance is managed and regulated directly by the state government through the Office of the Insurance Commissioner. This type of insurance includes home, auto, health and life insurance. Indirect insurance is insurance that is administered, but not necessarily purchased, through an insurer. This could include protections provided through employee benefits or risk management programs. This type of insurance is not regulated or managed directly by the state government and is instead overseen by the federal government, including the Affordable Care Act. Both direct and indirect insurance help protect individuals and businesses from financial losses due to unforeseen events or accidents. The main difference between the two forms of insurance is that direct insurance is managed and regulated through the state government while indirect insurance is managed and regulated by the federal government.

Related FAQs

What is the role of an insurance actuary?
What is a subrogation clause?
What is the process of filing an insurance claim?
What is an insurance deductible?
What is the difference between an insurance policy and a warranty?
What are the legal requirements for an insurance claim?
What is a claims made policy?
What is the difference between liability insurance and personal injury insurance?
What is the difference between an insurance policy and a contract?
What is the difference between public and private insurance?

What is the difference between direct and indirect insurance?

Related FAQs

Related Blog Posts