Accommodation Line [Insurance] Law and Legal Definition

Accommodation line is an insurance given in addition or in modification to a standard insurance contract as an accommodation by the insurance company. It may include one or more policies extended to continue the business of a valued agent, broker or customer. The insurance policy that is given as accommodation will be under ordinary circumstances will not be qualified as insurance. Here the modification or alteration is evoked by either the agent or the insured as an addition to the plan to fit their individual needs. In this type of agreement, the broker commonly receives a higher commission, the client receives larger coverage and the insurer sustains the business of a valued customer.

The main aim behind granting accommodation line is either to favor the policyholder or to develop good relations with the community in which it functions so as to attract more profitable policyholders.