The first and most fundamental aspect of the agent to distinguish is their relationship with the insurance company. That is, are you an independent agent or do you work for an insurance company that writes directly? Another factor to consider is the number of years they have been in business. This will help you better understand your level of knowledge and understanding of the industry. In addition, brokers and agents may have specialized knowledge or experience related to certain areas, such as estate planning, retirement planning, tax planning, or investment. Now that you've determined your insurance needs, it's time to start researching insurance agencies.
Over the next few years, finally, three different insurance companies trained me as a property and casualty insurer, and in 1968, I worked for a major insurance brokerage firm as senior vice president of operations in Michigan. Some agents are very good at giving the impression that they are actively taking care of their insurance needs, without actually having to put in the effort that is commitment requires. If you work with a captive agent for a major insurance company such as State Farm, Allstate, or USAA, you're probably familiar with the company through its extensive advertising. The independent agent usually has access to more than one insurance company to promote your company's insurance program, but remember that independent insurance agents and agencies don't have access to all insurance companies.
An insurance broker is a licensed insurance producer who does not sell insurance for a company with which their agency has a contract. One of the most valuable services an insurance agent provides is the ability to compare different coverage structures and pricing options. A smart commercial insurance buyer insists that agents put their money where their words are, demonstrating real effort and experience in relation to appropriate insurance coverage. The difference between an agent and a broker is quite technical, and most independent agents act as agents or brokers, depending on the insurance company they're dealing with. These brokers manipulated insurance quotes to direct their clients to certain insurers that paid those brokers so-called contingent commissions behind the scenes.
An agent is a representative of a particular insurance company who works on behalf of that particular insurance company. company. Many states have stopped making the distinction between agent and broker, and prefer the term insurance producer for anyone who sells insurance in any way. The then Attorney General of New York State, Eliot Spitzer, discovered that some well-known brokers and insurers had committed serious irregularities in compensating those well-known insurance producers.
The best insurance agents are at the forefront of preventing a disaster with their own insurance company. A broker is a licensed independent agent who represents the purchaser and works with many life insurance companies to negotiate the best coverage options available. If an industry expert can explain what to avoid and what to change at an insurance agency, policyholders can know what to look for when selecting an insurance agent.
