You might be looking for insurance for your visiting parents and come across several web sites that compete for you attention paying hefty advertising dollars to Google etc. The plans are all over the place and two plans may look alike but a very different price structure. As you perhaps figured out all insurance companies that operate in the US have to meet their claims from the premiums you pay. There is no such thing a good plan with cheaper price. This combination does note exist.
There are two kinds of insurance companies that you will find –
a) an admitted US based insurance company (for example, ACE American Insurance Company) or AXIS Insurance company or AIG, etc. )
b) Non-admitted surplus lines insurance companies (for example, Lloyds, Sirrus International, etc.)
Obviously, admitted US companies provide you much better protection against claims paying capability of the insurance company versus non-admitted companies. There are many other differences and those will be discussed in our next blog.