Difference Between An Independent Agent and Broker?

[Fisher]

Sorry, yes, the broker in California charges a fee for service not paid by the carrier as a commission.

And, as Dan says, it does change the fiduciary responsibility and I don't think I have ever met a licensed insurance "broker" in California. I am sure that they exist, but have never met one.

The current vogue term in CA is "producer".

Yes, when I was in Cali I was NOT a broker. 'Producer' is indeed the proper term there.

 

[Dave020]

Yes, when I was in Cali I was NOT a broker. 'Producer' is indeed the proper term there.

The term "broker" is so commonly used out here, even by the carriers themselves, that the real meaning is kind of lost.

I think producer is the best term. Agent is good as well, I think both denote an level of expertise.

 

[WinoBlues]

The term "broker" is so commonly used out here, even by the carriers themselves, that the real meaning is kind of lost.

I think producer is the best term. Agent is good as well, I think both denote an level of expertise.

I tend to only use Producer when I am talking to an Insurance Company or Company Rep. I use Agent or even Insurance Man with clients. Kinda depends on the audience.

 

[Justin Bilyj]

I always use "broker", its more professional sounding to me, indicates that you are working FOR the client, as oppose to the insurance company(s). I hate the word agent, it reminds me of "ned needlemeyer" from Groundhog Day (BING!), and besides, it sets you apart from all the millions of agents out there.

 

[Quotebroker]

In CA, many carriers call their producer contact CSRs- "Broker Services Departments"

 

[Ronca]

I agree with most above and feel the term is interchangeable based on personal preference. I find that Broker is used more frequently in commercial placements though rather than personal lines.

 

[geneshiao]

Well what distinguishes the two? Am I in any kind of violation of the insurance code if I call myself a broker?

This following is from pre-licensing course of Kaplan

A broker, on the other hand, represents the insured. An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health with, but not on behalf of, an insurer. A company that is seeking insurance could contact a broker, who in turn might contact several insurance companies to find the insurance that is best for the client. Although a broker may sometimes act as an agent of the insurer in certain activities, such as policy delivery, a broker does not have the authority to bind an insurer to an insurance contract. There is no such license issued in California. (CIC 33; 1623).

 

[Guest]

This following is from pre-licensing course of Kaplan A broker, on the other hand, represents the insured. An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health with, but not on behalf of, an insurer. A company that is seeking insurance could contact a broker, who in turn might contact several insurance companies to find the insurance that is best for the client. Although a broker may sometimes act as an agent of the insurer in certain activities, such as policy delivery, a broker does not have the authority to bind an insurer to an insurance contract. There is no such license issued in California. (CIC 33; 1623).

I feel really old, I didn't realize that I've been on this forum for 4 years.

 

[midwestbroker]

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...

 

[magiced]

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...

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