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

An insurance agent and a broker are two types of professionals involved in the insurance industry. An insurance agent works for an insurance company and is responsible for selling and managing the company’s insurance policies. In New Jersey, agents must be licensed by the State’s Department of Banking and Insurance. An insurance broker, however, works independently and on behalf of the consumer, not the insurance company. The broker looks at what types of policies are available from different companies and helps the consumer decide which policy best fits their needs. In New Jersey, brokers must be licensed by the State’s Department of Banking and Insurance, and they are also held to a fiduciary standard when working with clients, meaning they must strive to act in the best interests of their clients. In summary, the main difference between an insurance agent and a broker is that an agent works for an insurance company, while a broker works for the consumer. Agents sell and manage the company’s policies, while brokers look for policies from different companies that are best suited to the consumer and provide advice on selecting them. Agents and brokers must be licensed by the New Jersey Department of Banking and Insurance.

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

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