Difference Between An Independent Agent and Broker?

[yellowbirdnj]

In Massachusetts, there is a separate license for an Insurance advisor.

I always use the word insurance producer when describing myself. This way I can go into the sale in the way I feel is best. Note that if you claim that you are a broker then you can get sued easier. The broadest description of your job is usually the best defense.

Yes, many states have unique licenses. Some states have an estate advisor license. In NJ you can have a license just to pick up insurance premiums.

 

[goillini52]

In the eyes of the consumers, I judge it is the difference of a used car salesman vs. pre-owned sales consultant.

Insurance agent
Insurance broker
Benefit Consultant
Benefit specialist
Insurance Advisor

I have heard agents call themselves all the above...I am sure there are more but I didn't feel like thinking that hard...

On my license it says I'm a Producer. I never have liked that. I'm an Independent Insurance Agent, which also makes me an Insurance Broker.

 

[yellowbirdnj]

On my license it says I'm a Producer. I never have liked that. I'm an Independent Insurance Agent, which also makes me an Insurance Broker.

Right there, you just made a mistake. A broker looks out for the insured. An agent looks out for the company. If you claim that you are a broker, and you didn't look out for the insured, like shopping other companies for the best policy, then you can be sued big time. In most states, as an insurance producer, you can hold 3 positions: Agent, Broker, and Consultant. I can be an independent agent and work for one company, or a few companies. That doesn't mean that I am a broker. My advice is never to use the word broker unless you are truly doing brokerage work.

Also, avoid fun terms like Senior Advisor, or Advisor for Senior Living. Now the government, if their splendid ways of looking at things believe that any term denoting being a senior specialists may indicate that you are ripping old people off by claiming that. If those terms are on your card then you are in big trouble. Use the term Insurance Producer, its the broadest definition of your profession that in many ways protects you.

 

[WCMason]

Right there, you just made a mistake. A broker looks out for the insured. An agent looks out for the company. If you claim that you are a broker, and you didn't look out for the insured, like shopping other companies for the best policy, then you can be sued big time. In most states, as an insurance producer, you can hold 3 positions: Agent, Broker, and Consultant. I can be an independent agent and work for one company, or a few companies. That doesn't mean that I am a broker. My advice is never to use the word broker unless you are truly doing brokerage work. Also, avoid fun terms like Senior Advisor, or Advisor for Senior Living. Now the government, if their splendid ways of looking at things believe that any term denoting being a senior specialists may indicate that you are ripping old people off by claiming that. If those terms are on your card then you are in big trouble. Use the term Insurance Producer, its the broadest definition of your profession that in many ways protects you.

I'm pretty certain an agent who acts in the interests of a company over the client is not immune from consequences for not acting in the client's interest if a problem arises. "But Mr. DOI, I told him I was an agent. I never claimed to be a broker."

 

[goillini52]

Right there, you just made a mistake. A broker looks out for the insured. An agent looks out for the company. If you claim that you are a broker, and you didn't look out for the insured, like shopping other companies for the best policy, then you can be sued big time. In most states, as an insurance producer, you can hold 3 positions: Agent, Broker, and Consultant. I can be an independent agent and work for one company, or a few companies. That doesn't mean that I am a broker. My advice is never to use the word broker unless you are truly doing brokerage work.

Also, avoid fun terms like Senior Advisor, or Advisor for Senior Living. Now the government, if their splendid ways of looking at things believe that any term denoting being a senior specialists may indicate that you are ripping old people off by claiming that. If those terms are on your card then you are in big trouble. Use the term Insurance Producer, its the broadest definition of your profession that in many ways protects you.

I do look out for the insured 1st! I might have a customer for 20 years...but I might only use a company for a couple of years(I'm talking Med Supp here). My loyalty is to the customer. The reason I'm Independent and a Broker(I know there are several meanings), is so I can give the customer the best coverage for the premium. On my card it says Agent.

 

[yellowbirdnj]

I do look out for the insured 1st! I might have a customer for 20 years...but I might only use a company for a couple of years(I'm talking Med Supp here). My loyalty is to the customer. The reason I'm Independent and a Broker(I know there are several meanings), is so I can give the customer the best coverage for the premium. On my card it says Agent.

Good, the word Agent can save you butt. Broker can open the door to a lawsuit. The best word is Insurance Producer, it is the broadest definition of your profession.

 

[WCMason]

Good, the word Agent can save you butt. Broker can open the door to a lawsuit. The best word is Insurance Producer, it is the broadest definition of your profession.

The best title is the one printed on your state license. With any other term you're claiming to be something you are not.

Other descriptions aren't necessarily bad, however. Seems all this is a distinction without much of a difference.

 

[goillini52]

Good, the word Agent can save you butt. Broker can open the door to a lawsuit. The best word is Insurance Producer, it is the broadest definition of your profession.

I don't actually refer to myself as a Broker. When I tell people that I'm an Independent Agent that represents a lot of different companies, they often say, "you mean like a broker" and I say yes.

 

[yellowbirdnj]

The best title is the one printed on your state license. With any other term you're claiming to be something you are not.

Other descriptions aren't necessarily bad, however. Seems all this is a distinction without much of a difference.

That's right, your licenses and definitions of what you can do is your best defense. When you state that you are a specialist, consultant, broker, counselor, advisor, etc, then you are opening a door during a lawsuit that you are claiming to have above and beyond knowledge or specialty, to handle a problem or issue.

All of these other names, that agents come up with, like Senior Final Expense Specialist, Senior Living Specialist or Retirement Mutual Fund Counselor, or whatever name seems cool, really is for the agents ego, and not really benefiting them or the consumer. When I ask most of these people what training they have beyond the agents pre licensing and test, they say that they none. Most of these people also will make statements like professional designations are worthless. Yet they are people that make their own unique designation statements in the names that they come up with to define themselves to consumers.

 

[pfg1]

Not sure why folks like to dig up threads that are quite old as their first post. ??

But, since we're here... yellowbird, what you say makes sense. So what would you call yourself if you have a series 65 license, or a series 6/63, or 7/66? Just curious.

I've always heard that if you only sell life/health/annuities.... you should never call yourself an advisor (even though you are advising clients quite often). Technically you don't have an "advisor" license, you have an insurance license. But what about those that have insurance license and securities license?