What is the difference between independent and captive insurance companies?

Independent and captive insurance companies are two types of companies that provide insurance coverage to individuals, businesses, and organizations in California; however, they operate and provide services in a different way. Independent insurance companies are companies that are run by agents, brokers, and other private individuals. They typically operate on a commission basis and offer a variety of insurance services to policyholders. Independent companies often offer multiple lines of coverage, meaning they can provide more than one type insurance policy and help customers get the most coverage for the least amount of money. Captive insurance companies, on the other hand, are companies that have been created and owned by a parent organization. They typically provide specialized coverage for their parent organization, and are only allowed to offer policies for that organization. Captive insurance companies are often regulated by insurance boards or commissions in California, and they offer policies at a lower cost than independent companies. Overall, the main difference between independent and captive insurance companies is that independent companies offer multiple lines of coverage to a variety of customers, while captive insurance companies are owned by one organization and provide specialized coverage to that organization only.

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What is the difference between independent and captive insurance companies?

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