Insurance Agent vs. Insurance Broker

dude mud

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I work in sales and a friend of mine who works in insurance is trying to convince me to become an insurance broker. But I have no idea what they do. Is it the same thing as an insurance agent? Can someone give me a blow by blow?
 
Re: Insurance Agent Vs Insurance Broker

Same thing. Although the term "agent" sometimes refers to someone who is either captive or does not represent all companies.

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Re: Insurance Agent Vs Insurance Broker

Insurance agents are insurance professionals that serve as an intermediary between the insurance company and the insured. As a broad statement of law, an agent’s liability to their customers is administrative. That is, agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork.

Insurance brokers can be best described as a kind of super-independent agent. Brokers can offer a whole host of insurance products for you to consider. Brokers are required to have a broker’s license which typically means the broker will have more education or experience than an agent.
 
Re: Insurance Agent Vs Insurance Broker

Insurance agents are insurance professionals that serve as an intermediary between the insurance company and the insured. As a broad statement of law, an agent’s liability to their customers is administrative. That is, agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork.

Insurance brokers can be best described as a kind of super-independent agent. Brokers can offer a whole host of insurance products for you to consider. Brokers are required to have a broker’s license which typically means the broker will have more education or experience than an agent.

Thats incorrect. At least in TX anyway. There is no difference in licensing. We all have the same license.
 
I work in sales and a friend of mine who works in insurance is trying to convince me to become an insurance broker. But I have no idea what they do. Is it the same thing as an insurance agent? Can someone give me a blow by blow?



Being an insurance agent is not for everyone. If you just want to do this for the money, you won't make it .

Don't let him convince you unless this is something you really want to do.
 
I work in sales and a friend of mine who works in insurance is trying to convince me to become an insurance broker. But I have no idea what they do. Is it the same thing as an insurance agent? Can someone give me a blow by blow?

There is a difference. It depends on state law. For instance, in NC:

GS-58-33-10 (1) "Agent" means a person licensed to solicit applications for, or to negotiate a policy of, insurance. A person not duly licensed who solicits or negotiates a policy of insurance on behalf of an insurer is an agent within the intent of this Article, and thereby becomes liable for all the duties, requirements, liabilities and penalties to which an agent of such company is subject, and such company by compensating such person through any of its officers, agents or employees for soliciting policies of insurance shall thereby accept and acknowledge such person as its agent in such transaction.

GS-58-33-10 (3) "Broker" means a person who, being a licensed agent, procures insurance for a party other than himself through a duly authorized agent of an insurer that is licensed to do business in this State but for which the broker is not authorized to act as agent. A person not duly licensed who procures insurance for a party other than himself is a broker within the intent of this Article, and thereby becomes liable for all the duties, requirements, liabilities and penalties to which such licensed brokers are subject.

A NC broker must first be a licensed agent and if he wishes to be a broker must also post a bond.

To confuse things a bit further, NC also has:

GS-58-33-10 (7) "Insurance producer" or "producer" means a person required to be licensed under this Article to sell, solicit, or negotiate insurance. "Insurance producer" or "producer" includes an agent, broker, and limited representative.

North Carolina Insurance Producer License Types
Life
Health and Accident or Sickness
Casualty
Property
Variable Life and Variable Annuity Products
Personal Lines
Medicare Supplement/Long Term Care
Credit Agent
County Farm Mutual Agent
Title Insurance Agent
Auto Physical Damage Agent
Surplus Lines
Broker
Viatical Settlement Broker
Limited Representative
Risk Purchasing Group Agent
Risk Retention Group Agent​
 
Agent Represents the Company

Broker Represents the Insured

In many states (like FL for example) the legal distinction is insignificant as licensed agents may act as brokers under certain circumstances. Some states will consider anyone who solicits and places an insurance policy to be an agent of the insurer (with regard to that particular policy).
 
There may be legal distinctions, but for the most part the question is a bunch of "who shot john". It's like someone referring to himself as an insurance "consultant" versus insurance agent. Same work, but a percieved difference in prestige.
 
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