What does Independently Procured Coverage (IPC) involve?

What does Independently Procured Coverage (IPC) involve?

• A. The insured contacts a licensed broker
• B. The insured contacts a Non-Admitted carrier directly
• C. The insured must obtain state approval
• D. The insured must use only admitted carriers

Answer: (B)

Independently Procured Coverage (IPC) is a term used to describe situations where an insured seeks insurance coverage directly from a non-admitted carrier, without going through a licensed insurance broker. This process allows the insured to access coverage that might not be available in the admitted market, catering to unique or high-risk insurance needs. In this context, when an insured contacts a non-admitted carrier directly, they take on the responsibility of negotiating terms and conditions of the policy without the intermediary of a broker. This can be particularly advantageous for entities that require specialized insurance solutions that may not be easily available through traditional channels. The other options do not accurately reflect the nature of IPC. In particular, contacting a licensed broker or seeking state approval does not align with the direct access nature of Independently Procured Coverage. Additionally, the requirement to use only admitted carriers contradicts the fundamental purpose of IPC, which specifically deals with non-admitted insurance options.

Independently Procured Coverage (IPC) is a term used to describe situations where an insured seeks insurance coverage directly from a non-admitted carrier, without going through a licensed insurance broker. This process allows the insured to access coverage that might not be available in the admitted market, catering to unique or high-risk insurance needs.

In this context, when an insured contacts a non-admitted carrier directly, they take on the responsibility of negotiating terms and conditions of the policy without the intermediary of a broker. This can be particularly advantageous for entities that require specialized insurance solutions that may not be easily available through traditional channels.

The other options do not accurately reflect the nature of IPC. In particular, contacting a licensed broker or seeking state approval does not align with the direct access nature of Independently Procured Coverage. Additionally, the requirement to use only admitted carriers contradicts the fundamental purpose of IPC, which specifically deals with non-admitted insurance options.