In the context of insurance, an agent is a licensed professional who represents an insurance company in transactions with clients. The agent’s primary role is to help individuals, families, and businesses select insurance policies that provide the best protection for their lives, health, and property.
There are two types of agents, “captive” and “independent.” A captive agent represents a single insurance company and sells only that company’s products. They are often employees of the company they represent. On the other hand, an independent agent, also known as a broker, represents multiple insurance companies. They can offer clients more options and help them compare policies to find the best fit.
Agents are knowledgeable about a wide range of insurance policies and coverage. They can explain complex insurance concepts in simple terms, guide clients in assessing their insurance needs, and recommend appropriate coverage options. They also assist clients in filing and settling claims with the insurance company.
Agents earn a commission on each policy they sell, usually a percentage of the policy premium. They are regulated by state laws and must be licensed by the state where they sell insurance. To maintain their license, agents must complete continuing education courses and adhere to ethical and professional standards.