Your Auto Insurance

Your Auto Insurance

To give you a little understanding of who are considered insurance agencies, it is essential that you’d be brief about some mandates of the insurances code for your auto insurance. Basically, insurance agencies are precisely regulated by insurance law. Under this context, they derive permission to operate an insurance business from the so called “Insurance Commission”, “Insurance Federal Agency” in US. Under the law, insurance agency is one who makes or proposes to make an insurance contract or one who makes or proposes to make a contract of suretyship as a vocation.

Insurance Contract

Let us deal with the first phrase: One who makes or proposes to make an insurance contract for your auto insurance?

Once a company has introduced itself to you as a company doing insurance business and make or proposes an insurance contract to you, then there is no doubt that is an insurance agency under the said phrase.

Next phrase: One who makes or proposes to make a contract of suretyship as a vocation.

A suretyship is a contract where a person, called the surety, answers for the debt or the liability of another person. If a company is consistently answering for the debt or liability of another as a form of business or vocation, then such company is considered as an insurance agency.

Insurance Agency

In order for you to know if a company is an insurance agency, all you have to do is to refer the said phrases. If the answer comprehends positively to either one of it, then you can tell it is an insurance agency.