What is a subscription agreement?

Sadly, no I am not talking about your subscription to your favorite magazine. However, if you think of a subscription agreement like a membership to your current insurance company.


What didn't you know you had a membership! Oh yes, congratulations, you are a subscribed member to insurance company X.


A legal definition of the sub agreement is as follows: Subscriber’s Agreement means an agreement executed by each policyholder in a reciprocal/inter-insurance exchange pursuant to which, among other things, the policyholder appoints an attorney-in-fact to act on its behalf in connection with the policyholder’s insurance business at the reciprocal/inter-insurance exchange.

(https://www.lawinsider.com/dictionary/subscribers-agreement)


Are you thinking to yourself, hey that is fishy, why do they get to choose for me, I want to pick these things myself. Hmm, what, maybe I do no understand.


Okay, now let's break it down and make it a smidge easier.



subscriber's Agreement ( Sub Agreement)means an agreement executed by each policyholder (insurance company) in a reciprocal/inter-insurance exchange pursuant to which, among other things, the policyholder appoints an attorney-in-fact to act on its behalf in connection with the policyholder’s insurance business at the reciprocal/inter-insurance exchange. (Ohh yes, see this is about the company getting a lawyer. OK makes sense now.)


Good news, the company is not trying to get anything extra from you or take anything from you. This is just a membership whereas you are the member.


Still confused, send me a message or start a forum, lets chat.


1 view0 comments

Recent Posts

See All

This coverage is similar to Hidden water damage when water is leaking inside the walls of your home. However, this is more like from your AC or the shower pan. That is not to say that it will not cove

Hidden water damage is when water is leaking inside the walls of your home from a leaky pipe. What this coverage is though, is to correct the damage from the leaky pipe, not the actual leak or the pip