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. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...
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

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center