Page 225 - The UnCaptive Agent

198 THE UNCAPTIVE AGENT

creation of over four thousand five hundred independent
insurance agencies.
Surplus Lines Broker: A broker admitted in a state
who is licensed to place coverage with non-admitted
insurers (those not licensed to do business in a given
state).
Wholesaler: A type of insurance broker acting as
an intermediary between a retail insurance agent and
insurance company. There are two types of wholesalers:
Managing General Agents and Surplus Lines Brokers.
Working Capital: The classical definition is current
assets minus current liabilities on a business balance
sheet. For the agency startup, it really means cash in
excess of the amount needed to pay bills at a given
point in time.