What Does Accommodation Line Mean?
Accommodation line refers to a modification in the insurance policy approved by the insurance company when it will not even have done so under ordinary circumstances. The approval is a recognition of the policyholder’s good standing with the company.
Insuranceopedia Explains Accommodation Line
Like in other industries, some clients are prized more than others. It may be because those clients bring so much income to the business or that they have been patronizing the business for so long. The same is true with the insurance industry. There are clients given perks and privileges not otherwise given to others.
If a person is considered a valued policyholder, he or she can ask to modify a policy through a broker. The change will add coverage to the policy. The broker upon successfully arranging this change with the insurance company gets a bigger commission.