What does Servicing Carrier mean? Read on to discover the definition & meaning of the term Servicing Carrier - to help you better understand the language used in insurance policies.
Four states Florida, Hawaii, Michigan, and Missouri use an alternative residual market mechanism known as a joint underwriting association (JUA). All companies doing business in the state share the premiums of business outside the voluntary market, and they share in the profits, losses, and expenses. With a JUA, an insurance agent is generally assigned one of several servicing carriers. The agent then submits applications to that servicing carrier, which then issues the JUA policy. Servicing carriers are insurance companies that have agreed, for a fee, to issue and service JUA policies.
We hope the you have a better understanding of the meaning of Servicing Carrier.