What does Affiliated Companies mean? Read on to discover the definition & meaning of the term Affiliated Companies - to help you better understand the language used in insurance policies.
Affiliated companies refer to a company and a parent company that holds less than 50% ownership and is therefore the minority shareholder. In addition, companies may also be considered affiliated if they are both owned by a parent company. Furthermore, a loose usage of the term may refer to companies that are related to each other. In terms of insurance, insurance companies may be affiliated through interlocking directorates or common ownership.
We hope the you have a better understanding of the meaning of Affiliated Companies.