Uniform Reciprocal Licensing Act

AAA

DEFINITION of 'Uniform Reciprocal Licensing Act'

A law that regulates unlicensed insurers. The uniform reciprocal licensing act allows the insurer's home state to revoke the insurer's license if deemed that they were unlicensed and doing business in another state. Insurance companies must be registerd and be licensed under the state they operate in.

INVESTOPEDIA EXPLAINS 'Uniform Reciprocal Licensing Act'

This act is used to protect the citizens of the state by ensuring the insurance companies are aware of and follow the regulations set out by the state they live in. It also exists to protect legitimate insurers from price undercutting by unlicensed insurance companies. Not all insurance companies fall under this act however, a few exceptions include reinsurers.

RELATED TERMS
  1. Additional Insured

    A type of status associated with general liability insurance ...
  2. Licensing Agreement

    This term refers to a written agreement entered into by the contractual ...
  3. Functional Regulation

    A concept stating that a company with a specific business should ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. State Administrator

    The government agency or official who oversees and enforces state-level ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. Is Your Insurance Company Going Belly ...
    Home & Auto

    Is Your Insurance Company Going Belly ...

  3. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  4. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center