Insurance Brokers: What They Do and Who Needs One
by Admin
Posted on 17-11-2022 09:54 PM
A completed
broker's application, form 3520
payment of a
$200.
Insurance brokers represent individuals and small businesses to find the best value in terms of cost and coverage. Simply stated, insurance brokers represent the interests of the buyer, not the interests of the seller. Insurance brokers offer experience in different types of insurance and risk management, working closely with individuals and companies to establish the scope of their insurance needs. With this understanding, insurance brokers shop a variety of insurance companies to find the best policy fit for their customer. Whether focused on one particular type of insurance or industry or more generalized across a variety of categories, insurance brokers research coverage, terms, conditions and the price of various policies and then offer a recommendation to their customer.
What is an insurance broker?
Since 1969, strickland insurance brokers has provided quality service
and continues to strive to make customer satisfaction our top priority!
though, no longer a part of strickland insurance group, and not directly related to atlantic casualty insurance,
strickland insurance brokers still provides the same quality service that we have since 1969, and is still owned
and operated by the strickland family.
“it literally only took about 5 minutes for them to take care of my request for information with my policy. They are so nice and very prompt. I am very glad i got in contact with this company, and would recommend them to anyone!! the best car insurance broker online, by far!!.
When to use an insurance broker
According to a study by the united states government accountability office, insurance brokers and agents must obtain a state license and comply with insurance regulations. To qualify for a license, a broker must meet rigorous qualifications. For instance, california’s licensing requirements include at least 20 hours of pre-licensing study and 12 hours of california insurance code and ethics studies, plus continuing education after obtaining a license.
In australia[ edit ] in australia, all insurance brokers are required under the financial services reform act 2001 to be licensed by the federal government's australian securities and investments commission (asic). Reputable and experienced insurance brokers in australia will generally also hold additional qualifications such as a certificate or diploma in financial services which requires the completion of in depth studies in a specific area, the most common being general insurance or insurance brokering. Within australia there are also a number of industry bodies that issue professional accreditations to members that comply with best standards of professional practice and integrity and maintain up to date skills and knowledge.
Understanding how brokers are paid will help protect you from a broker who cares more about making money than placing you with the right policy. Brokers can make money in two different ways: through a commission or broker fee. They may charge both or only a commission. Most states require brokers to disclose commission rates and other fees upfront. Still, it’s smart to ask about any charges you’ll have to pay besides premiums.
This is the kicker. In exchange for being your partner for your insurance needs, brokers need money. They can get paid in two ways:.