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. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. 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 ...
  6. 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 ...
Trading Center