Roles for Insurance Agents and Brokers

Insurance Agents and brokers are the people, who pass the licensing examination that is conducted by the Insurance Department. In order to clear this examination, you are required to have a thorough knowledge of the different Insurance policies, rules as well as practices. These people provide us all possible help whenever we desire to obtain coverage from an Insurance company. The agents work on behalf of the Insurance companies, as their sales representatives, in return of a commission. There is a difference between insurance agents and brokers and the functions of both need not be confused. The basic difference between the two is that the work of the agent is to write policies, while that of the broker is to help and assist the customer, when he is making the policy.
There are many factors that we are required to take into consideration, before we purchase a contract. In cases where the Insurance is secured, the basis of the security is required to be seen. It is to be seen whether the security is on voluntary basis or on the basis of residual market. We can also ask for a detailed breakdown of the policy details so that we have a better understanding of all the features, that includes certain explanations that is related to deductions, premiums as well as coverages

In return of all the services provided by the Insurance agents and brokers, they receive commission. They usually provide us with a written memo that states the fee that they are charging. There is a limitation in maximum fee charged if the placement is made through an Auto Plan. If the placement is through other kinds of sources like the voluntary market, then there is no limitation to the fees charged, as long as everything is provided in writing in the agreement. It is to be kept in mind that the agents and brokers are in no position, to offer you cash, as any kind of inducement.

We should always try to obtain the best kind of coverage. In order to fulfill this purpose, we may contact the different brokers and agents, so as to find the best insurance deal. There are several ways, in which we are able to find the best broker and agent-the most common method is by seeking help from a happy and satisfied relative. It is in our best interest to approach the best brokers and agents, so that we get the best policy.