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Lines of Insurance

In addition to differentiating insurers according to the nature of their structural organization, another way of classifying insurance companies is by the type of insurance policies they write. Insurance coverages are often broken down in to lines of insurance, which are groupings of similar kinds of insurance for statistical and reporting purposes. Information about premiums and losses is frequently analyzed by line of insurance at the company level. They are also used to monitor agency operations by examining individual agencies to determine which lines of insurance are profitable and which are not.

Four Major Lines of Insurance

There are four broad categories, or lines, of insurance:

  • Property

  • Casualty

  • Life

  • Health and Disability

An insurance company that writes only one line of insurance is referred to as a mono-line company. An insurance company that writes more than one line of insurance is called a multi-line company. Many large companies write all lines of insurance.

Personal and Commercial Lines

Each of the four major categories of insurance can be further subdivided into both personal and commercial lines. Personal lines are property-casualty coverages that protect an individual or family. Commercial lines are coverages designed for businesses.

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