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I believe an agent is an insurance professional who serve as an intermediary between the insurance company and the insured. He has a purely administrative duty. Insurance agents can be either:
Captive – A captive agent is an agent who works for only one company and is a “captive” of that company. A captive agent will sell policies only for that insurer.
Independent – An independent agent is one who works as an agent for a variety of different insurers. An independent can produce policies from several insurers and offer some comparisons of different insurance policies.
Insurance brokers can offer a whole host of insurance products for you to consider. Brokers are required to have a broker’s license which typically means the broker will have more education or experience than an agent.
Brokers also have a higher duty, in most states, to their clients. Brokers have the duty to analyze a business and secure correct and adequate coverage for the business. This is a higher duty than the pure administrative duty of the agent.
Insurance broker is the one who represent the insured in negotiation and buying insurance and may render services to facilitate those function such as determining the insurance premium rates and deductibles , claims settlement as well as explaining the general condition of the insurance policies to the proposed insured.
Insurance agent is the one who represent the insurance company in selling the insurance policies and effects contracts on behalf of the insurer.
Thanking You.
Insurance agents work for only an organization by which it is empolyed.But insurance broker deal with several organization at a same time as it is an entity itself.
