What does Parent Company mean? Read on to discover the definition & meaning of the term Parent Company - to help you better understand the language used in insurance policies.
Where property-casualty (P&C) insurers constitute a group of companies, the "flagship" or senior company. The use of multiple corporate entities allows additional flexibility in working with varying state regulations. For example, an insurance company group might consist of one or more admitted insurers and one or more nonadmitted insurers operating in various states. The entire group is often referred to by the parent company's name.
We hope the you have a better understanding of the meaning of Parent Company.