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 Posted: Tue Nov 11, 2008 5:19 am Post subject: insurance agents-brokers |
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Are there really any differences between the insurance agents and brokers?
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Pompido_alverado
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| Posted: Tue Nov 11, 2008 8:27 am Post subject: |
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Hi Pompido,
Insurance brokers are professionals who'd offer you a vast channel of products to choose from. They are independent and more than that. That's why probably they are being described as "super-independent". Brokers are licensed agents and hence they are essentially more qualified than that of the general agents. ArindamSenIndies |
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ArindamSenIndies
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| Posted: Tue Nov 11, 2008 8:48 am Post subject: |
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Hi,
Brokers would need to involve themselves with a lot of other stuffs across the different states. They would need to analyze the business operations after a careful considerations of facts and thus decide the right kinda coverage towards covering the business.
On the other hand the agent would merely have some administrative tasks to perform. But yeah, you'd certainly need to pay them more than the general agents. Brokers would either charge the administrative fee or fetch more premiums for issuing the coverage. Evan |
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evan
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| Posted: Tue Nov 11, 2008 11:00 am Post subject: |
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While the insurance agents work on behalf of the insurance company, the broker works for the customer. The broker has lot more flexibility in finding a policy that would suit your needs.
While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client.
Many a times you may hear people use the terms insurance agents and brokers synonymously, but they are different by their nature of work.
Hope this helps.
~Jeremy |
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JeremyHolter
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| Posted: Wed Nov 12, 2008 8:31 pm Post subject: |
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I'd just like to expand on Jeremy's post a bit.
From a layman's, or general insurance consumer's standpoint, the terms agent and broker are entirely snonymous. From a position within the industry, there are basic differences. Agents usually work for a specific company (Allstate Agent, John Doe) and brokers are usually self-employed (John Doe Insurance and Financial Planning).
| Quote: | | While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client. |
Both agents and brokers receive commissions from the companies they represent. A fee-based practice is a slightly different entity and is more heavily regulated than the others. An agent has to jump through a few more regulatory / legal hoops to make that one work.
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InsInvestigator
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| Posted: Thu Nov 13, 2008 4:40 am Post subject: |
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| Wow!! Investigator, thanks for dropping in with the imvaluable information. Also thanks for clarifying my shaddy areas. Hope it will help the OP to understand better about the broakers and agents. |
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JeremyHolter
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