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

In Oregon, an insurance agent and a broker are both individuals who are specially trained to sell and negotiate insurance policies. However, they have different roles in the process. An insurance agent represents an insurance company and is paid a commission from that company for selling its policies. Insurance agents work on behalf of the insurance company and must abide by the terms of the company’s policies when negotiating with customers. In contrast, an insurance broker works on behalf of the customer and is paid a commission by the customer for helping them find the best policy to suit their needs. Insurance brokers are often independent contractors and do not have to abide by the terms of any one insurance company. They can shop around for policies from multiple companies in order to get the best rates and coverage for the customer.

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