An insurance broker is usually an intermediary who deals in insurance, either for a specific client or for the general public. They are licensed and authorized by their state to undertake insurance sales. This allows them to sell insurance products to people both by word of mouth and through the Internet. A licensed insurance broker can be found on the Department of Insurance’s Web site. This department is responsible for licensing insurance brokers and their sales pitches. Brokers are required to complete and maintain a specified number of insurance training courses every year.
To get the best value for money and a good insurance policy, consumers should shop around for different quotes. While comparison shopping, there are a few things that the consumer should keep in mind. The first is that the insurer should not be the first to approach the potential client. The insurer and the potential client should develop a relationship and the prospective client should understand when the relationship becomes an exclusive one. It is also important to remember that the insurance broker is not the insurer’s sales force and should not be counted upon to sell more policies than the insurer is able to sell.
The insurance broker should be qualified and knowledgeable. Brokers have passed the examination administered by the State Insurance Commissioner. There is also a certain level of education required of agents who are seeking licensing. These agents need to take courses that include Health, Life, Property, Casualty, and Disability insurance coverage. Most states require that agents complete at least six years of practical and advanced insurance agent training.
It is usually the responsibility of the brokerage to supply ongoing continuing education courses to insurance brokers. However, many companies choose to do their own training. Consumers should check with the insurance broker to find out which companies he or she recommends. In this way, the customer can get the most value for money. Brokers can provide information about the courses being offered as well as contact information for the companies offering the courses.
One way of finding the best insurance policy for an individual is to contact the insurance provider directly. However, there may be restrictions to the type of policy a customer can purchase. Some insurance providers require potential policy buyers to attend a pre-licensing course. In order to make an informed decision about the insurance policy, it is important for the customer to become as educated as possible about the industry. Many agents offer this service.
Insurance brokers have a particular set of commission rates. They receive a percentage of the total premium amount collected by the insured. Insurance companies set commission rates in order to encourage insurance brokers to fully underwrite each policy and meet specific financial objectives.
Some insurance companies allow their auto insurance brokers to participate in state incentive programs. Some other auto insurance companies provide additional discount benefits for auto insurance brokers who enroll in their company’s multi-line or multi-car discount plans. Some car insurance companies even reward their insurance brokers with cash bonuses for achieving sales goals.
All in all, it is possible for auto insurance agents to earn a very comfortable living working for themselves. The most important aspect to remember when thinking about the earning potential of insurance broker jobs is that you have to be loyal to an insurance broker and the insurance company he represents. After all, your only source for commission is the insurer’s willingness to pay you a hefty commission for selling their insurance policies. If you do not sell a policy successfully, your only option may be to find a new broker.