What can be considered a form of independently procured insurance?

Independently procured insurance refers to coverage that an individual or business acquires directly from an insurer, particularly a surplus lines insurer, without going through a licensed agent or broker. This allows policyholders to obtain insurance that may not be available through traditional markets due to its unique or non-standard nature.

When considering directly obtaining insurance from a surplus lines insurer, individuals are afforded the opportunity to customize their coverage based on specific risks that may not be adequately addressed by conventional policies. Surplus lines insurers are often utilized for risks that are considered too high for standard insurers, thus meeting the definition of independently procured insurance.

In contrast, purchasing insurance through state-run exchanges typically involves more standardized offerings and is regulated by state guidelines, which would not fall under the category of independently procured insurance. Competitive rates or group insurance plans offered by employers usually involve standardization and pooling of risk, further distancing them from the concept of independent procurement.