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

An insurance agent and a broker are two distinct types of professionals who provide different services when it comes to insurance. An insurance agent is someone who works for a single insurance company and is licensed to sell only their company’s products. They only offer their company’s policies, and their job is to explain the features, benefits, and cost of their insurance products and help customers purchase policies that meet their needs. An insurance broker, on the other hand, works independently and represents multiple insurance companies. They have more flexibility to shop around on behalf of their customers to find the best policy and coverage at the best price. They have access to a variety of different companies and products, making them better equipped to provide advice and recommend policies that are more suitable to their customers’ needs. Both agents and brokers operate within the framework of the laws in California. They must be licensed by the Department of Insurance and must adhere to ethical standards of conduct. Certain products may require additional licensing such as property and casualty or life and health insurance. Both agents and brokers also have continuing education requirements in order to keep their licenses up-to-date.

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

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