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

An insurance agent and a broker are both people licensed to sell insurance. However, there are key differences between them. An insurance agent typically works for only one insurance company, such as State Farm, Allstate, or Progressive. The agent is familiar with policies and procedures of that one company, and presents only their products to potential customers. On the other hand, an insurance broker is able to work with multiple insurance companies. A broker will search multiple companies to find the best coverage and rates for the customer. The customer has a choice of different insurance policies and rates with a broker. In Maryland, to obtain an insurance license, an individual must complete an approved insurance pre-licensing program and pass an exam. Individuals must also obtain a surety bond. Agents and brokers must also stay up-to-date with continuing education requirements and any changes to insurance laws. In summary, insurance agents work for one company and present their products, whereas brokers provide a variety of policies and rates from different companies. Both types of professionals must be licensed in Maryland and have completed a pre-licensing program and passed an exam. Additionally, they must adhere to continuing education requirements and any changes to insurance laws.

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

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