What is an Insurance Broker?
March 10, 2009 5:00 am General Information
An insurance broker or insurance agent is a person that acts as a bridge between the prospective client and the insurance provider. The broker negotiates, effects or solicits policies of insurance for the insurance provider. By closing a sale, the broker is paid by the insurance company a specific commission for his efforts. The broker is licensed by the insurance company to deal directly with prospective clients. The broker-agent is not an employee of the insurance company but rather acts as a representative of the client to the insurance company.
Any broker-agent will receive commission from the insurance company and may in certain conditions also charge the client a fee for the services he performed in behalf of the client. A broker-agent will be very helpful for those who do not have time to personally negotiate an automobile insurance or do not have an idea of what to do.