What is the difference between independent and captive insurance companies?

The main difference between independent and captive insurance companies is how they operate. An independent insurance company is free of restrictions and provides customers with a wide variety of choices when buying insurance. These companies are not bound by any specific regulatory body and are able to select their own insurers to serve their clients. A captive insurance company, on the other hand, is one that is regulated by the Arkansas Insurance Department. These are usually owned by large corporations and they are restricted in the type of policies they can offer. They primarily focus on providing coverage to the corporate owners, but they may be able to sell policies to outside customers as well. The main distinction between independent and captive insurance companies when it comes to Arkansas is that independent companies are allowed to offer multiple policies, while captive companies are required to offer one type of policy. The Arkansas Insurance Department sets the rules that captive insurance companies must follow in order to operate, while independent companies can follow their own guidelines. This allows customers to find the policy that best fits their needs.

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What is the difference between independent and captive insurance companies?

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