The terms ’insurance agent’ and ’insurance broker’ are often used interchangeably. To most people, they mean the same – people who sell insurance to customers. It is generally true of course; however, there are a few important differences you need to be aware of. That information will help you decide on who to contact for your insurance needs. There are a few commonalities between the two:
- Agents and brokers both require a license from the regulatory agency of the state in which they sell insurance.
- Both receive their compensation from the companies whose insurance policies they sell.
- They both need to acquire necessarily a few from many accreditations; a customer has the right to know which ones the agent needs to acquire, and which others the broker needs to. The customer has the right to be familiar with what those accreditations entail.
An insurance agent is a representative of an insurance company: he works on behalf of that company to sell thecontinue reading →