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

Insurance agents and brokers are both professionals who make a living connecting customers to insurance policies, but there are important differences between the two. An insurance agent is contracted to work for a specific insurance company and may only offer that company’s products. Agents must also be licensed in the state in which they practice, including South Carolina. Whereas agents must be licensed by a single insurance company, brokers can be associated with multiple companies. This allows the broker to offer customers a variety of options, while agents can only offer one company’s products. Brokers are also required to complete a larger scope of classes in order to be licensed and may even be required to hold securities licenses in order to sell certain types of products. Finally, brokers often have access to additional resources and industry contacts that agents do not have. Ultimately, customers should look for professionals who are licensed in the state, familiar with the product, and can provide them with reliable service.

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

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