Whats the difference between an “insurance agent” and an “insurance broker”?
An insurance agent is someone who is licensed by a carrier to represent them. So technically, they are the insurance company’s representative in the market. An “independent agent” can be licensed by a variety of companies while a “captive agent” is usually only licensed by one company. An insurance broker, on the other hand, is legally the representative of the client and is free to place business wherever they can find a market. In reality, however, when you’re dealing with personal insurance issues, like auto and homeowner’s coverage, ninety-nine percent of the time you’re dealing with agents. It’s usually the bigger commercial companies that are dealing with the major national insurance brokerages in placing coverage not only here in the United States but overseas. So, for the most part, people are dealing with agents who are legally representatives of the companies that appointed them.
