What is the difference between an insurance agent and a broker?

An insurance agent and a broker are both professionals who specialize in insurance policies, but there are some differences between them. An insurance agent has a contract with an insurance company to represent them and sell their policies. Their primary duties include giving advice to potential policyholders, helping with policy selection, and processing paperwork. Insurance agents typically work on behalf of a single insurance company, and they are often not licensed to work with any other company. An insurance broker, on the other hand, acts as an independent intermediary between the policyholders and the insurance companies. Insurance brokers do not represent one particular company and can represent multiple different insurance companies. They are responsible for finding the best policies to suit their clients’ needs and negotiating with the insurance companies to ensure the best rate. In California, both insurance agents and brokers must be licensed by the state’s Department of Insurance. They have to complete a state-approved pre-licensing course and pass a licensing exam in order to become licensed. Overall, the main difference between an insurance agent and a broker is that an agent works on behalf of a single company, while a broker works independently to represent multiple companies. Also, agents are employed by the insurance company, while brokers are independent contractors.

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What is the difference between an insurance agent and a broker?

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