Who pays? Is the cost paid by either side or is it divided between the claimant and the insurer?
3. What is the difference between an insurance agent and an insurance broker? Generally, an agent is a representative of the company. Therefore the insurance company is responsible for whatever the agent says or does. A broker – if paid by you – may be considered your representative, not the company’s. In such a situation what the broker says or does may not be the responsibility of the company. If the broker is paid by the insurance company, he or she may be considered its representative. In such a case, the carrier may be liable for statements by the broker. 4. Can an insurance company cancel or refuse to renew a policy? During the policy term the insurer generally cannot cancel except for specific reasons, such as failure to pay premiums, fraud by the policyholder, or a material (important) misrepresentation made in the application. In most situations, insurance companies can refuse to renew a policy at the end of the current term as long as the refusal does not violate the existing
