An entity providing a marketplace for insurance coverage that is generally
unavailable elsewhere, for unusual or nonstandard risks. Unlike insurance companies,
however, insurance exchanges do not underwrite insurance coverage. Rather, they
are nonprofit organizations that oversee its underwriting members or "syndicates."
In this capacity, exchanges receive premiums, issue policies, handle claims,
supervise underwriters, and monitor their solvency. Lloyd's of London is the
world's foremost insurance exchange. The INEX (formerly the Illinois Insurance
Exchange) is the leading, and only, American insurance exchange.
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