Combination Agency

AAA

DEFINITION of 'Combination Agency'

A type of agency which combines segments that are normally separate. A combination agency will take two separate but related services and provide them both to customers. In life insurance, a combination agency could sell both ordinary life insurance as well as industrial life coverage, or it could provide both life insurance and health insurance. These agencies stand in contrast to those that focus on only one type of service. Also known as combination companies.

INVESTOPEDIA EXPLAINS 'Combination Agency'

Many life insurance agencies are combination agencies. The agency may have separate agents or brokers that focus on one type of coverage or the other, or they may all sell both lines. Companies will do this when they feel the services provided are close enough that customers will benefit from a one-stop shop. Also, combination companies can increase their revenue by offering both lines of coverage. Some regulations prevent certain companies from providing two related services, for example some financial institutions might not be able to provide banking services and life insurance in the same branch. Instead, customers might be directed to call for the service.


Fire departments refer to combination agencies as departments with both volunteer and paid employees.

RELATED TERMS
  1. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  2. Insurance

    A contract (policy) in which an individual or entity receives ...
  3. Agent

    1. An individual or firm that places securities transactions ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Investment Income Ratio

    The ratio of an insurance company’s net investment income to ...
Related Articles
  1. Professionals

    CFP, CLU Or ChFC - Which Is Best?

    The designation you choose will depend on which areas of financial planning you want as your focus.
  2. Options & Futures

    The Alphabet Soup Of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  3. Options & Futures

    Earn Big Bucks With A Specialized Financial Career

    Choosing to specialize may be easier for you and more beneficial to your clients.
  4. Entrepreneurship

    Becoming An Insurance Agent

    Few careers match the opportunity for as quick and large a paycheck as does being a life insurance agent.
  5. Insurance

    Who are the best-rated life insurance companies in the US?

    Learn about what makes an insurance company the best. Read about the best life insurance companies in the U.S. in 2014, following ratings by Weis.
  6. Insurance

    What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but there are times when it isn't.
  7. Insurance

    What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider when purchasing insurance.
  8. Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio?
    Trading Strategies

    How Good An Investment Is Life Insurance?

    Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio? A look at the pros and cons.
  9. Here's how to incorporate life insurance into a plan to ensure that you and your family have the smoothest possible transition into retirement.
    Retirement

    The Smart Way To Use Life Insurance For Retirement

    Here's how to incorporate life insurance into a plan to ensure that you and your family have the smoothest possible transition into retirement.
  10. Insurance

    What are the tax implications of a life insurance policy loan?

    Learn the instances in which you are required to pay taxes on a life insurance policy loan, so you can avoid making a costly mistake.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center