Which term refers to insurance sold outside the agency of the insurer?

The term that refers to insurance sold outside the agency of the insurer is "non-admitted insurance." Non-admitted insurers are those that have not received authorization or a license from the state to operate within that jurisdiction. This means that the insurer does not conform to state regulations and is not subject to the same level of oversight as admitted insurers. Non-admitted insurance is often used in situations where coverage is difficult to obtain from admitted carriers, such as for high-risk businesses or unique risks.

In contrast, direct insurance refers to policies sold directly to consumers without the involvement of agents, while independent insurance generally refers to agents who can represent multiple insurers but still operate within the bounds of those insurer's regulations. External insurance isn't a standard term used in this context, making it less applicable here. Understanding the nuances between these terms is essential for recognizing how different types of insurance operate within regulatory frameworks.