Broker VS Agent

[ccage]

Hello, I am Newly licensed and was wondering what is the difference between being a Broker and being an agent.

Also, I understand how one simply becomes an Agent, but how does one become a Broker.

 

[Baseball7]

Agent works for a company, a la captive agent
Broker, represents numerous companies

 

[DHK]

There may be far more legalities than that - IF you're selling P&C insurance:
Law Defining "Agents" and "Brokers"

1621. An insurance agent is a person who transacts insurance, including 24-hour care coverage as defined in Section 1749.02, other than life, disability, or health insurance, on behalf of an admitted insurance company. The term "insurance agent" as used in this chapter does not include a life agent as defined in this article.

1623.(a) An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life insurance with, but not on behalf of, an admitted insurer. It shall be presumed that the person is acting as an insurance broker if the person is licensed to act as an insurance broker, maintains the bond required by this chapter, and discloses, in a written agreement signed by the consumer, all of the following:

There's more that you can read at the link. Broker and agent are two very different legal terms. Most true brokers are paid a fee by the consumer to find and service their insurance.

The way I look at it, once I'm recommending a policy and taking an application... I'm an agent. I'm always an agent for the various insurance companies I represent. As far as which one that I recommend, is based on their situation.

 

[ccage]

Agent works for a company, a la captive agent
Broker, represents numerous companies

Im terms of contracting is there a difference. Like I know an Agent gets contracted through a carrier or IMO rather.

Is a Broker basically someone contracted by more then one IMO or carrier?

For example you have some Agents that are captive, and some that are Independent Contractors. Is a broker basically someones who has access to more then one carrier so they can offer there Clients more options?

Or is it one of those this that just has alot of gray areas

 

[ccage]

There may be far more legalities than that - IF you're selling P&C insurance:
Law Defining "Agents" and "Brokers"





There's more that you can read at the link. Broker and agent are two very different legal terms. Most true brokers are paid a fee by the consumer to find and service their insurance.

The way I look at it, once I'm recommending a policy and taking an application... I'm an agent. I'm always an agent for the various insurance companies I represent. As far as which one that I recommend, is based on their situation.

So its kinda someone who has more then who is licensed in more then 1 line of Insurance, then Someone who is auto, life, health?

Alot of gray areas in this subject I can see.

 

[ccage]

Agent works for a company, a la captive agent
Broker, represents numerous companies

I just re-read what you said, ok i get it now. So Independents are more brokers. Get it when I first read it I misunderstood

 

[WinoBlues]

I just re-read what you said, ok i get it now. So Independents are more brokers. Get it when I first read it I misunderstood

What line do insurance are you looking to do? Are you licenced yet?

 

[ccage]

What line do insurance are you looking to do? Are you licenced yet?

I am licensed in life. I have a couple of friends who already are in the business,

I originally had a bunch of questions about contract levels (I.e. how to become an MGA, IMO) and basically eventually would like the challenge of being a Manager. The problem is you ask around to an agent directly and you don’t get a straight answer, just an agent contract and then say “sign up I will teach you everything”

Then I met an agent at a networking event who (I think had a couple of drinks) told me that he got an MGA contract right out the gate. So I was like ok I am going to do ALOT of research before I sign up.

The people on this forum are VERY helpful.

 

[WinoBlues]

I am licensed in life. I have a couple of friends who already are in the business,

I originally had a bunch of questions about contract levels (I.e. how to become an MGA, IMO) and basically eventually would like the challenge of being a Manager. The problem is you ask around to an agent directly and you don’t get a straight answer, just an agent contract and then say “sign up I will teach you everything”

Then I met an agent at a networking event who (I think had a couple of drinks) told me that he got an MGA contract right out the gate. So I was like ok I am going to do ALOT of research before I sign up.

The people on this forum are VERY helpful.

I do not know what you are doing now or your back ground. However, do not over analyze this. You can research this and that for a solidify year and not know Jack until you get out there and try to get ink on paper.
Just my 2cents.

 

[WinoBlues]

I am licensed in life. I have a couple of friends who already are in the business,

I originally had a bunch of questions about contract levels (I.e. how to become an MGA, IMO) and basically eventually would like the challenge of being a Manager. The problem is you ask around to an agent directly and you don’t get a straight answer, just an agent contract and then say “sign up I will teach you everything”

Then I met an agent at a networking event who (I think had a couple of drinks) told me that he got an MGA contract right out the gate. So I was like ok I am going to do ALOT of research before I sign up.

The people on this forum are VERY helpful.

Oh, and you are correct this forum is very helpful. But many of these people did the hard work to learn. They do not owe any of us Jack. How much do any of us do for free daily. How much volunteer work do we do daily? Many of these people on here do charity work every day here.

I get much more out of the forum than I give.

Get started and Good luck.