Accommodation Line
Definition
- When an insurance company approves insurance coverage for a client who normally would not qualify as a favour to a broker. A broker may use an insurer for a great deal of business, so in some cases it may behoove the insurer to use an accommodation line to approve a few policies for sub-standard clients in order to placate a broker and stop them from taking their business to another insurance company.
Synonyms
take in, make room, welcome line
Related Terms and Acronyms
- Concealment — Definition,
- The act of lying or omitting information when applying for insurance coverage.
- Insurance Broker — Definition,
- An agent who sells insurance policies.
- Premium — Definition,
- A payment made to an insurance company for insurance coverage.
- Substandard Insurance — Definition,
- Insurance for those who are ineligible for standard insurance due to higher risk profiles.
- Without Evidence of Insurability — Definition,
- Applying for insurance coverage without the insurer requiring the individual to take a medical examination.
