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

The difference between an insurance agent and a broker is that agents are employed by an insurance company and act as an intermediary between the insurer and the insured. They are often limited to selling the products offered by the insurer they are contracted with. An insurance broker, on the other hand, is a third-party provider who acts independently and is not employed by any particular insurance company. They are free to shop on behalf of their customers to find them the best coverage options available, even if that means they have to go outside the company they are working with. An insurance agent typically earns a commission from the insurance company based on the policies they sell. An insurance broker, on the other hand, is usually paid a fee by their customers. Both agents and brokers must be licensed and pass examinations in order to do business in Idaho. In the end, the most important difference is that insurance agents are just selling products, whereas insurance brokers are helping their clients navigate the complexities of the insurance world, and making sure that they have the right coverage to meet their needs.

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

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