Storm Silva
New Member
- 7
Hello everyone, I am a little confused on how insurance brokers quote customers. According to CA's DOI Brokers are not allowed to act as brokers if they are appointed with an insurance company, meaning that if they do have an appointment with a company that they sell insurance through than they are actually working as an agent. I've done some research and I've done some research and figured out the main differences between independent agents and insurance brokers. Here is what I've found so far.
Independent Agents
- Represent the insurer
- Have an appointment on file with the insurer
- Has the power to bind coverage
- Can not charge Brokers Fees
- Receives commision from the insurer
- Does not need to put up a surety bond with the State
Insurance Brokers
- Represents the insured
- Does not have an appointment on file with the insurer
- Does not have the power to bind coverage
- Can Charge brokers Fees
- Can receive commision from the insurer
- Needs to put up a surety bond with the State