Combination Agency

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.

BREAKING DOWN '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. Premium

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

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

    Any person who has been legally empowered to act on behalf of ...
  4. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
Related Articles
  1. Entrepreneurship

    Becoming An Insurance Agent

    Few careers match the opportunity for as quick and large a paycheck as does being a life insurance agent.
  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. 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.
  4. Options & Futures

    Earn Big Bucks With A Specialized Financial Career

    Choosing to specialize may be easier for you and more beneficial to your clients.
  5. Products and Investments

    Cash Value vs Term Life Insurance: Which is Best?

    The debate between cash value life insurance and term insurance plus an investment plan is an ongoing one. Here's a look at both sides of the argument.
  6. Your Practice

    Advisors: Win Over Millennials with Insurance

    Millennials don’t have the same values and goals as previous generations. Here are some tips on how advisors can adapt to their needs and wants.
  7. Insurance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
  8. Term

    Is Term Life Insurance the Right Choice?

    Term life insurance is a policy with a limited coverage period.
  9. Insurance

    Cashing In Your Life Insurance

    In tough economic times, tapping into a life insurance policy can provide a needed source of funds.
  10. Entrepreneurship

    Becoming An Insurance Agent

    Life insurance protects families, employers and others from financial loss in the event the insured individual dies.
RELATED FAQS
  1. What's the difference between Social Security Disability Insurance (SSDI) and Supplemental ...

    Disabled persons can receive payments through two programs: Social Security Disability Insurance and Supplemental Security ... Read Full Answer >>
  2. Does renters insurance cover personal injuries?

    Renters insurance provides two main forms of coverage – liability and contents insurance – and they are offered together ... Read Full Answer >>
  3. Does renters insurance cover jewelry?

    Renters insurance provides personal property coverage that covers your personal property – including jewelry – in case of ... Read Full Answer >>
  4. Why might landlords require renters insurance?

    Landlords can require renters insurance to lower their own liability and insurance costs. According to data from the Insurance ... Read Full Answer >>
  5. What is the expense ratio in the insurance industry?

    The expense ratio in the insurance industry is a measure of profitability calculated by dividing the expenses associated ... Read Full Answer >>
  6. Do beneficiaries pay taxes on life insurance?

    Generally speaking, when the beneficiary of a life insurance policy receives the death benefit, this money is not counted ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center