Classification codes for a independent insurance brokerage

The Sector as a Whole The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation. 2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment. 3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs. In addition, monetary authorities charged with monetary control are included in this sector. The subsectors, industry groups, and industries within the Finance and Insurance sector are defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing characteristics of the production process. For instance, the production process in raising funds through deposit-taking is different from the process of raising funds in bond or money markets. The process of making loans to individuals also requires different production processes than does the creation of investment pools or the underwriting of securities. Most of the Finance and Insurance subsectors contain one or more industry groups of (1) intermediaries with similar patterns of raising and using funds and (2) establishments engaged in activities that facilitate, or are otherwise related to, that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which a production process can be specified, and many of these activities are not exclusive to a particular type of financial institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split these institutions into components performing specialized services. This requires defining the units engaged in providing those services and developing procedures that allow for their delineation. These units are the equivalents for finance and insurance of the establishments defined for other industries. The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise. Additionally, a number of independent activities that represent separate and distinct production processes may take place at a single location belonging to a multilocation financial firm. Activities are more likely to be homogeneous with respect to production characteristics than are locations, at least in financial services. The classification defines activities broadly enough that it can be used both by those classifying by location and by those employing a more top-down approach to the delineation of the establishment. Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation are included in multiple subsectors, rather than in a separate subsector dedicated to services alone, because these services are performed by intermediaries, as well as by specialist establishments, and the extent to which the activity of the intermediaries can be separately identified is not clear. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds to and from transactors' accounts, notifying banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction processing activities are integral to the production of finance and insurance services, establishments that principally provide a financial transaction processing service are classified in this sector, rather than in the data processing industry in the Information sector. Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety of purposes. Thus, for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities.

This industry comprises establishments primarily engaged in initially underwriting (i.e., assuming the risk and assigning premiums) various types of insurance policies (except life, disability income, accidental death and dismemberment, and health and medical insurance policies). Illustrative Examples: Automobile insurance carriers, direct Property and casualty insurance carriers, direct Bank deposit insurance carriers, direct Title insurance carriers, real estate, direct Mortgage guaranty insurance carriers, direct Warranty insurance carriers (e.g., appliance, automobile, homeowners', product), direct Cross-References.

This U.S. industry comprises establishments primarily engaged in initially underwriting (i.e., assuming the risk and assigning premiums) insurance policies that protect policyholders against losses that may occur as a result of property damage or liability. Illustrative Examples: Automobile insurance carriers, direct Malpractice insurance carriers, direct Fidelity insurance carriers, direct Mortgage guaranty insurance carriers, direct Homeowners' insurance carriers, direct Surety insurance carriers, direct Liability insurance carriers, direct Cross-References.

This class includes: - provision of insurance services other than life insurance: • accident and fire insurance • health insurance • travel insurance • property insurance • motor, marine, aviation and transport insurance • pecuniary loss and liability insurance

This class includes: - underwriting annuities and life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies (with or without a substantial savings element)

This class includes: - activities of insurance agents and brokers (insurance intermediaries) in selling, negotiating or soliciting of annuities and insurance and reinsurance policies

Agents primarily representing one or more insurance carriers, or brokers not representing any particular carriers primarily engaged as independent contractors in the sale or placement of insurance contracts with carriers, but not employees of the insurance carriers they represent. This industry also includes independent organizations concerned with insurance services. Establishments engaged in searching real estate titles are classified in Industry 6541. Fire Insurance Underwriters'Laboratories Fire loss appraisal Insurance adjusters Insurance advisory services Insurance agents Insurance brokers Insurance claim adjusters, not employed by insurance companies Insurance educational services Insurance information bureaus Insurance inspection and investigation services Insurance loss prevention services Insurance patrol services Insurance professional standards services Insurance reporting services Insurance research services Insurance services Life insurance agents Medical insurance claims, processing of: contract or fee basis Pension and retirement plan consultants Policy holders'consulting service Rate making organizations, insurance

Establishments primarily engaged in underwriting fire, marine, and casualty insurance. These establishments are operated by enterprises that may be owned by stock-holders, policy holders, or other carriers. Agricultural (crop and livestock) insurance Assessment associations: fire, marine, and casualty insurance Associated factory mutuals, fire and marine insurance Automobile insurance Boiler insurance Burglary and theft insurance Contact lens insurance Federal Crop Insurance Corporation Insurance carriers: fire, marine, and casualty Mutual fire, marine, and casualty insurance Plate glass insurance Property damage insurance Reciprocal interinsurance exchanges: fire, marine, and casualty Stock fire, marine, and casualty insurance Workers'compensation insurance

Establishments primarily engaged in underwriting life insurance. These establishments are operated by enterprises that may be owned by stock-holders, policy holders, or other carriers. Assessment life insurance organizations Benevolent insurance associations Burial insurance societies Cooperative life insurance organizations Fraternal life insurance organizations Fraternal protective associations Funeral insurance Insurance carriers, life Legal reserve life insurance Life insurance Life insurance funds, savings bank Life reinsurance Reinsurance carriers, life

This class includes: - provision of insurance services other than life insurance: • accident and fire insurance • health insurance • travel insurance • property insurance • motor, marine, aviation and transport insurance • pecuniary loss and liability insurance

This class includes: - underwriting annuities and life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies (with or without a substantial savings element)

This class includes: - activities of insurance agents and brokers (insurance intermediaries) in selling, negotiating or soliciting of annuities and insurance and reinsurance policies

**Exclusions/References:** - Units mainly engaged in - (a) providing insurance broking services are included in Class 6420 Auxiliary Insurance Services; - (b) providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs are included in Class 6321 Health Insurance; and - (c) providing life insurance and life reinsurance cover are included in Class 6310 Life Insurance. **Primary Activities:** - Accident insurance provision - All risks insurance provision - Fire insurance provision - General insurance provision - Household insurance provision - Insurance provision n.e.c. - Mortgage insurance provision - Motor vehicle insurance provision - Owner's liability insurance provision - Reinsurance (except life) provision - Third party insurance provision - Travel insurance provision - Worker's compensation insurance provision

**Exclusions/References:** - Superannuation funds managed by life insurance companies are included in Class 6330 Superannuation Funds. This exclusion does not relate to statutory funds of life insurance companies for the purpose of conducting superannuation business - such funds are part of the assets of the life insurance companies. - Units mainly engaged in: - (a) providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs are included in Class 6321 Health Insurance; and - (b) providing general insurance cover (except health or life) are included in Class 6322 General Insurance. **Primary Activities:** - Life insurance provision - Life reinsurance provision

**Exclusions/References:** - Superannuation funds managed by life insurance companies are included in Class 6330 Superannuation Funds. This exclusion does not relate to statutory funds of life insurance companies for the purpose of conducting superannuation business - such funds are part of the assets of the life insurance companies. - Units mainly engaged in: - (a) providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs are included in Class 6321 Health Insurance; and - (b) providing general insurance cover (except health or life) are included in Class 6322 General Insurance. **Primary Activities:** - Life insurance provision - Life reinsurance provision

This class includes: - provision of insurance services other than life insurance: • accident and fire insurance • health insurance • travel insurance • property insurance • motor, marine, aviation and transport insurance • pecuniary loss and liability insurance

This class includes: - underwriting annuities and life insurance policies, disability income insurance policies, and accidental death and dismemberment insurance policies (with or without a substantial savings element)

This class includes: - activities of insurance agents and brokers (insurance intermediaries) in selling, negotiating or soliciting of annuities and insurance and reinsurance policies

Appraise automobile or other vehicle damage to determine repair costs for insurance claim settlement. Prepare insurance forms to indicate repair cost or cost estimates and recommendations. May seek agreement with automotive repair shop on repair costs.

Sell life, property, casualty, health, automotive, or other types of insurance. May refer clients to independent brokers, work as an independent broker, or be employed by an insurance company.

Process new insurance policies, modifications to existing policies, and claims forms. Obtain information from policyholders to verify the accuracy and completeness of information on claims forms, applications and related documents, and company records. Update existing policies and company records to reflect changes requested by policyholders and insurance company representatives.

Insurance representatives advise on and sell life, accident, automobile, liability, endowment, fire, marine and other types of insurance to new and established clients. Tasks include - (a) obtaining information about customers’ circumstances necessary to determine appropriate type of insurance and conditions; (b) negotiating with customers to determine type and degree of risk for which insurance is required; (c) explaining details of insurance and conditions, risk coverage premiums and benefits to customers; (d) assisting clients to determine the type and level of coverage required, calculating premiums and establishing method of payment; (e) negotiating and placing reinsurance contracts; (f) advising on, negotiating terms for and placing insurance contracts for large or special types of projects, installations or risks. Examples of the occupations classified here: - Insurance agent - Insurance broker - Insurance underwriter Some related occupations classified elsewhere: - Insurance agency manager - 1346 - Securities broker - 3311 - Insurance assessor - 3315 - Insurance clerk - 4312.

Financial and insurance services branch managers plan, direct and coordinate the branches of institutions that provide financial and insurance services, such as banks, building societies, credit unions and insurance companies. They provide advice and assistance to clients on financial and insurance matters. Tasks include - (a) planning, directing and coordinating the activities of staff in the branch; (b) establishing and maintaining relationships with individual and business customers; (c) providing advice and assistance to customers on their financial and insurance needs and on matters such as changes in law that may affect customers; (d) examining, evaluating and processing loan and insurance applications; (e) monitoring credit extension decisions; (f) conducting financial investigations; (g) overseeing the flow of cash and financial instruments, and the preparation of financial and regulatory reports; (h) approving or rejecting, or coordinating the approval or rejection of, lines of credit for commercial, real estate and personal loans; (i) coordinating cooperation with other branches of the company; (j) managing budgets, controlling expenditure and ensuring the efficient use of resources; (k) overseeing the selection, training and performance of staff. Examples of the occupations classified here: - Bank manager - Building society manager - Credit union manager - Financial institution branch manager - Insurance agency manager Some related occupations classified elsewhere: - Finance manager - 1211 - Credit and loans officers - 3312 - Insurance agent - 3321.

Statistical, finance and insurance clerks obtain, compile and compute statistical or actuarial data or perform clerical tasks relating to the transactions of insurance establishments, banks and other financial establishments. Tasks include - (a) processing insurance enrolments, cancellations, claims transactions, policy changes and payments; (b) obtaining and compiling statistical or actuarial data based on routine or special sources of information; (c) calculating totals, averages, percentages and other details and presenting them in the required tabular form; (d) preparing financial documents, and calculating interest or brokerage charges and stamp duties payable; (e) maintaining records of bonds, shares and other securities bought or sold on behalf of clients or employers. Examples of the occupations classified here: - Actuarial clerk - Brokerage clerk - Finance clerk - Insurance clerk - Mortgage clerk - Securities clerk - Statistical clerk Some related occupations classified elsewhere: - Stocks and shares broker - 3311 - Accounting assistant - 3313 - Statistical assistant - 3314 - Trade broker - 3324 - Accounts clerk - 4311 - Bookkeeping clerk - 4311.

**Includes:** - underwriting services of insurance policies which cover risks of damage to or loss of property excluding that covered in subclass 71331 (Motor vehicle insurance services), 71332 (Marine, aviation, and other transport insurance services) and 71333 (Freight insurance services). Risks covered may include fire, theft, explosion, storm, hail, frost, natural forces, radioactive contamination and land subsidence - underwriting services of insurance policies for non-commercial vessels and aircraft - underwriting services of insurance policies for boilers and machinery, which covers property spoilage from lack of power, light, heat, steam or refrigeration

**Includes:** - underwriting services of policies for legal expense insurance, mortgage insurance, fidelity insurance or title insurance - underwriting services of insurance policies which cover risks of miscellaneous financial loss, that is, expenses arising from the following risks: loss of employment, insufficiency of income (general), bad weather, loss of benefits, continuing general expenses, unforeseen trading expenses, loss of market value, loss of rent or revenue, indirect trading losses (other than those mentioned above), other financial loss (non-trading) and other forms of loss - underwriting services of insurance policies which cover other non-life risks n.e.c.

**Includes:** - underwriting services of insurance policies which provide protection for hospital and medical expenses not covered by government programmes and, usually, other health-care expenses such as prescribed drugs, medical appliances, ambulance, private duty nursing, etc. - underwriting services of insurance policies which provide protection for dental expenses - underwriting services of insurance policies which provide periodic payments when the insured is unable to work as a result of a disability due to illness or injury **Excludes:** - travel insurance services, cf. 71337