Insurance Broker

Frequently Asked Questions

1. QUESTION:
   Insurance broker?
   I know what a broker is but don't know what an insurance broker is and wondered if anyone knew what it kind of job it is and what requirments you need to become one? Thanks.

   • ANSWER:
     I have recently replied to a similar question about career as an insurance broker, but here goes.

     An insurance broker is both the agent of several insurance companies (who authorise him to sell their products) and an agent of his clients (who he may advise on the type of insurance products available). This immediately causes possible conflicts of interest although the FSA are imposing standards to ensure this does not happen.

     The broker may offer 'a fair market analysis' i.e. a range of products for a type of insurance, ' a limited range of products' or a single product and it is quite possible for a broker to offer different numbers of products for different types of insurance e.g. a broker may offer a 'fair market analysis' for car insurance but only a single legal expenses insurance policy. It is a condition of the FSA rules that they advise you on what basis your requirements are offered (usually found in a status disclosure or IDD document).

     Insurance brokers may 'advise you' or offer you a selection of policies for you to choose. If you buy on the internet you are not getting advice and it is up to you to ensure that the policy you buy meets your needs - only a fool or an expert should buy insurance online. If the broker offers advice then they have to ask sufficient questions to ascertain your 'demands and needs' and make a recommendation based on your 'demands and needs'. You should therefore get what you need under those circumstances (which is NOT always the cheapest!)

     Insurance broking was regulated by the Insurance Mediation Directive passed by the EU and regulation in the UK was undertaken by the FSA on January 14th 2005.

     To become an insurance broker you need.

     Expertise in the insurance products you sell. (TC)
     Adequate Financial Resources. (PRU)
     Knowledge of how to administer products and provide details of yourself to your customers (ICOB)
     Apply for Part IV permission from the Financial Services Authority
     Be accepted as agents from insurance companies
     Have Professional Indemnity Insurance (SYSC)
     Have client accounts to look after client money (CASS)
     Treat your customers fairly (TCF) and apply high level business standards (GEN)
     Be able to compete against existing insurance brokers and insurance companies and bancassurers all of which have tremendous financial resources to attract business.

     I would read the FSA handbook - http://fsahandbook.info/FSA/select-handbook/tailored/GIBRKR - to appreciate the rules we have to abide by.

     In the future I can see a situation where only the better off seek advice about their insurance needs and others buy online, direct from insurers, banks and have to look out to see if the cover is suitable.

     But it is a very interesting occupation - hope I have not put you off!

2. QUESTION:
   Insurance Broker?
   I am thinking about become an auto insurance broker.
   How do I get licensed and where can I buy the software that’s needed?

   • ANSWER:
     What state are you in? And you don't need "software" to sell insurance. If you are in california, you can write me at edmundich@hotmail.com

3. QUESTION:
   Is there an insurance broker in the Orange County area that knows both personal and business insurance?
   I own a small business (sandwich shop) and my broker is good with business insurance but I think my rate is too high. I like AAA but they don't do business. I need something a little simpler, like one call. I am looking for someone who knows both areas pretty well and can help me save some money. Thanks!

   • ANSWER:
     Sure there are! Lots of independent agents can write both. You probably need to call a few, by typing in your zip code to www.iiaba.net at the agent locator tab.

4. QUESTION:
   If insurance broker forgot to pay my premium to the insurance company, am I still covered?
   My premium was due last August which I paid to the broker. They forgot to forward the funds to the actual insurance provider and I had received a notice of cancellation. The policy was not reinstated until November 25th. They sent me a renewal notice saying I have to pay again in August. They said since it was their (the brokers) fault I would have been covered anyway if something happened (this is a commercial insurance policy). Is that true?

   • ANSWER:
     You wouldn't have been covered god forbid if anything happened to your commercial property,because the insurance company in subject hasn't received the necessary premium.The broker however,who charged you a good agency fee was just calming your nerves. Go directly to the companies next time!

5. QUESTION:
   How do i start my own insurance broker business?
   Do i need to do some sort of course?how do i become a insurance broker?

   • ANSWER:
     Go to the department of insurance website for your state and find out what the rules are.

     Generally speaking, you will need to have some number of years experience in the insurance industry (it may vary by state) before you can even take the brokers test. You will need to take the state license test before you are a broker. As far as I know, all states also require you to take some number of hours of approved education courses. Again, it will vary by state.

     Insurance is regulated by state and they don't just let you hang a sign out and start selling insurance if you don't know what you're doing. It requires learning the business first.

6. QUESTION:
   What level of detail does my insurance broker see in my medical records?
   I am applying for insurance and my broker is a related party. I went to get tested for stds and I DO NOT want him to see that. What level of detail does he see when I provide him with Doctor contact information? What type of information does a Doctor provide?

   • ANSWER:
     The broker won't see the medical records directly - what they will see, are underwriting notes if your policy is "uprated" or declined - the reason for the uprating or declination.

7. QUESTION:
   How do I become a Life and Health Insurance Broker in Arizona?
   I have found how to become an Agent, but I want to be the Broker. Is there a time requirement as an Agent, like in Real Estate, before I can become a Broker? Or can I study and pass the exams for Insurance Broker without a time constrant. I'm pretty smart and capable, and would like to just go do it, and start building up my own business. I don't know what the Broker Exam is called. What I have found seems a little abstract. Any help?

   • ANSWER:
     There isn't any difference, from your point of view, in an agent and a broker. The license is the same.

     You want a producer's license.

     Good luck finding someone to let you sell their insurance. That's the hard part.

8. QUESTION:
   Do I need to use an insurance broker to buy business insurance?
   I run a small independent shop, and require business insurance. Does anyone offer this direct like household and motor, or do I have to use a specialist broker?

   • ANSWER:
     Business insurance is much more complicated than home or Auto insurance. Although there may be websites that offer coverages, what coverages do you need and what coverages are just wasted money? Not many people know the answers to these questions when shopping for business insurance.

     I would recommend using an independent insurance agent as they can market to multiple insurance companies and make sure to find you the best deal out there. And as stated above, insurance agents are NOT middle men, we are an INDEPENDENT individual that is here to help you find the right coverages for your business. Would you rather have an employee of the insurance company telling you about the "specials" and "discounts" their products have, or would you rather have an independent agent tell you which company is the best fit for you?

     Companies that write direct did not ELIMINATE the "middle man", they just hired him and now has to pay him commission and pay for his benefits.

     Good luck to you!

9. QUESTION:
   What are the responsibilities of Group Health Insurance Broker?
   I am trying put together a list of what we would like to achieve from our search for a new Health Insurance Broker. What are some of the responsibilities I should be expecting from our new broker?

   • ANSWER:
     Business experience
     Product knowledge
     Access to several markets
     Ability to communicate to ownership
     Ability to communicate to employees
     Prompt resolution of problems

10. QUESTION:
    what is the best way to market a small insurance broker?
    My dad is a broker in the insurance business. We cant really afford to have fansy billboard and other expensive adverts. However we have a good data base and get repetitive sales from our current clients. Does anyone have a great idea to promote this business?

    • ANSWER:
      Make a webpage or a blog about your dad,s business with all the contact addresses. Then simply use google adwords to direct the customer to your site. Its cheap and its fun. Suppose you choose the word "insurance" on Google Adwords, then all the people searching for insurance will see your link at the side of the first or second page and you will only be charged a few cents only when a user clicks on your link and visits your site.

11. QUESTION:
    Can I start with working with a wholesale insurance broker if I can't find any insurance company to appoint me?
    Can I start with working with a wholesale insurance broker if I can't get any appointments?

    • ANSWER:
      its the same problem . you have to be appointed to be able to sell insurance as a broker. now you might be able to become a sub agent. which means you will be selling the policies for a licensed agent.

12. QUESTION:
    What is the most popular and best auto insurance broker in NYC? Any recommendations? What is the advantage?
    By best, I mean the lowest priced rate they can come up with. What is the advantage I get going to a broker instead of directly going to a popular auto insurance company? Thanks a lot.
    I live in Bronx, NY, work in Manhattan and I have a 2000 Toyota RAV4.

    • ANSWER:
      The best thing to do is to ask friends & colleagues who they use for their insurance. If you have a tenants or co-op policy, go to that company first. Travellers is a good company and used to have decent rates in NY. I was from NJ & one of my insureds moved to Manhattan & his rate went down with Travellers. They work through independent agents. Look in the phone book under insurance & start calling. You don't necessarily want the cheapest rate (remember you get what you pay for), you want the best coverage for your situation. You want a good company that will be there to help you if you have a claim. Good luck to you. If I were still in the area, I may have known someone but unfortunately, I am not anymore.

13. QUESTION:
    Can an insurance broker who does healthcare and retirement benefits also do Commercial insurance.?
    I know someone who wants a whole package together. On our brokers website, it says he does all kinds of stuff, but it doesnt list commercial insurance. If he works with many different carriers, wouldnt the carrier be able to offer it through the broker to our business.

    • ANSWER:
      It sounds like your guy is a Life and health agent, commercial insurance requires a separate property and causality license.
      Not all brokers are experts in every field most specialize in one or two areas. Your guy probably has a contact he will refer you to.

14. QUESTION:
    How do I become an admitted insurance broker?
    What are the best insurance companies (Auto & Home primarily) out there? I would like to become an admitted agent. I have my broker’s license already. I have worked under an auto insurance co. for about 5 years, but would like to go into business on my own.
    What are the good companies, Which companies have good compensation programs? I’ll be working in a good and high risk market, in Los Angeles area …anyone has done this, any suggestions?
    Thank you in advance for all your assistance!

    • ANSWER:
      You need to get a company to appoint you - and that's mostly through networking.

      Usually in your shoes, YOU don't get to choose from companies, you're more likely to have to take whoever will take you on. Progressive is a pretty easy one to get into, or any captive agent like State Farm, or Allstate, but then it narrows your options in the long run.

15. QUESTION:
    Who is a good auto insurance broker in Chicago?
    I want to get the contact information of a good auto (and perhaps renter's) insurance broker. I want somebody that is independent and shows all the companies at once for me. They have to be authorized to sell in IL.

    • ANSWER:
      Find one through this website: www.iiaa.org

16. QUESTION:
    what does an insurance broker actually do?
    I have a job interview tomorrow as an Admin Assistant / Insurance Broker.

    Whilst I'm confident it has jsut dawned me i haven't got a scooby what an Insurance Broker does.

    Can anyone shed any light? Ta.

    • ANSWER:
      http://en.wikipedia.org/wiki/Insurance_broker

      Basically, an insurance broker is a middle man (or woman) who links people needing insurance with those who provide it (and they get paid by the insurance provider and/or customer for making the introduction).

      Good luck with the interview. Handy tip: If they leave you in the room on your own and the phone rings, answer it politely and pass on the message

17. QUESTION:
    how to become a part time independent insurance broker in Ontario?
    Hi, i would like to know how to become a part time independent insurance broker in Ontario?
    Educational requirements?
    Professional certificates?
    Professional experience?
    License requirements?

    • ANSWER:
      Insurance brokers in Ontario are licensed and regulated by the Registered Insurance Brokers Association of Ontario (RIBO). The first level of license is called the Entry Level (Acting Under Supervision) level. This level allows you to deal with the public with regards to general insurance other than accident & sickness insurance (including life insurance). If you wish to sell A&S and Life Insurance then you need a different license. In order to obtain an Entry Level license you need to pass a Entry Level or Equivalency examination. You do this by registering for a course. RIBO does not run the courses, but the Insurance Brokers Association of Ontario does. You can click the link below for more information about the course. Keep in mind you have to be employed with a brokerage in order for you to obtain the license. If you take the course but aren't employed at a brokerage then RIBO might let you take the course and give you a certificate of completion when you pass the exam, but they won't give you a license until you are employed as a broker. The only problem I see for you is I don't know any brokerages that are going to hire a part time broker. A brokerage would want someone working full time in order to be useful.
      There are no educational requirements to become a broker, but you need to take 8 hours of continuing education courses per year in order to maintain your license. No professional experience/requirements are required either however you can obtain professional designations in insurance.

18. QUESTION:
    What education to i need to apply in Quebec for Life Insurance broker?
    Hi my brother that lived till now in the US moved to Quebec Canada and is thinking to learn for a life insurance broker does anyone knows what éducation he needs to start learning? (like a GED...) Thanks

    • ANSWER:
      In the United States, no education is required. All you need to do is attend life insurance school and pass the class. Then take the state exam and pass it. Then you are able to sell life insurance.

      I'm not sure how Canadian insurance laws work, but I guess the process is similar.

19. QUESTION:
    Where can i be an insurance broker but still earn residuals?
    I want to sell insurance/financial products, which company can let me do this as a broker so I can sell any product to a client so I can be competitive but still earn residuals on those policies?

    • ANSWER:
      Just about any independent agency will hire you as a producer, and residuals are usually included, as long as you work with them.

20. QUESTION:
    Does anyone know what age i can start classes to be an insurance broker?
    Well yea im looking into that ....well my mother is to be more specific but yea it would be halpful if anyone could give me some sites or info on how to be an insurance broker. Thanks!
    Oh for anyone else is state is California

    • ANSWER:
      You have to be at least 18 in California.

      California requirements are on the Department of Insurance website, link below.

21. QUESTION:
    Where do I find a life insurance broker?
    Looking to buy life insurance online. What's a good place to look for a broker.

    • ANSWER:
      ah, you're really looking for spam links.

      You find a LOCAL broker, with a REAL office, at www.iiaba.net . . . and put in your zip code.

      Life insurance cannot be purchased SOLELY online.

22. QUESTION:
    How do you become an UK insurance broker?
    How do you become an UK insurance broker?
    What is involved in the starting up process?
    What are the costs involved?
    What is required?

    Thanks

    • ANSWER:
      Depends what type of incurance you are looking to work in as some insurances you will need to be qualified. In order to find out what is required try the Financial Services Authority as they regulate insurance.

      And no insurance brokers are not all robbers but maybe just the ones a dodgy spark would use! lol

23. QUESTION:
    what is the average salary for an insurance broker?
    Im trying to become a successful insurance angent and want to become a broker.

    • ANSWER:
      I think you mean income and not salary.
      Insurance is a tough business Brokers can struggle making 20K or thrive making 100K+ it greatly depends on the individuals ability to produce.

      The keys to success are PROSPECTING, PROSPECTING, then KNOWLEDGE , read everything you can get your hands on. Subscribe to life insurance selling and any other industry magazines you can get. You need to constantly read. If you are selling health insurance learn as much as possible about the major carriers in your state. Understand each companies strengths and weaknesses.

      You need to spend money to make money. Purchase leads from people looking for the products you are selling. I suggest Vimo.com, they have websites that prospects visit to request quotes and then the lead is sent to you in real time.

      But with that said if you don't have the skills you will not close very many sales. I found these very helpful:
      CD's "How to master the art of selling anything" by Tom
      Hopkins
      http://www.tomhopkins.com/store/product.php?productid=16164&cat=250&page=1

      "Prospecting you way to sales success" by Bill Good
      http://www.billgood.com/bills_book/

      Remember listen to your clients, help them fill a need with what they need not what you need to sell.

24. QUESTION:
    Could a insurance broker afford to pay 12,000 a year on school fees?
    I don't know how much they earn. Could a professional insurance broker in charge of 2 offices afford that?

    • ANSWER:
      It's hard to say. Salary wise a broker maybe able to, or if he's commission based and has a good client base then it's definetly possible. Considerations that could pose a problem are other debts, such as mortgage/rent, car notes, credit cards/loans, and other living expenses.

25. QUESTION:
    What is a standard commission fee for an insurance broker?
    If a company pays ,000 a month for its employee health insurance premium, what would a standard broker commission be?

    • ANSWER:
      ,000 per MONTH is a ton of money for health insurance. I'm guessing the group has well over 100 people.

      Aetna in my area would probably pay 3%, because the group would be paying 0,000 per year in premium (the more the group pays in premium a year, the less % producers get).

      Thus, the producer would get paid ,100 dollars per month from Aetna for being the agent of record for you company.

      There's hundreds of insurance companies though. Commission is probably anywhere from 1-5%, or 0-00 per month in commission.

26. QUESTION:
    how long does it take to become a property & casualty insurance broker?
    I want to sell auto insurance, but I don't want to be an agent, I want to be a broker. What's the process involved, and what's the fastest time that I can complete this in?

    • ANSWER:
      Most states these days, use the words interchangably. You have to take and pass a test. It's the same test, for agent and broker.

      If you know enough to pass the test, you could sign up for it today and take it tomorrow.

      If you're a fast study, you can do nothing buy study for a week, and maybe pass.

27. QUESTION:
    Is it customary to make a check out to an insurance broker (instead of the insurance company)?
    I am applying for personal liabiility insurance for private educational consulting and the application says to make the check out to the broker...that seems weird to me...does anyone know?

    • ANSWER:
      Here's the scoop: If the policy is going through a regular, national carrier such as State Farm, Zurich, Nationwide, etc, you can make the check out to either the broker or the company.

      If your policy is being issued through a non-admitted carrier, however, OR if your policy is being financed through a premium finance company, then the company won't accept the insured's check - they want the "guaranteed funds" of the broker's account, so the broker will have to swap checks with you. Then they remit THEIR check, which is actually the money you paid them.

28. QUESTION:
    Seeking an independent homeowners Insurance broker in Texas?
    I am lookng for the lowest rates on homeowners insurance in the state of Texas.I prefer an independent insurance broker.

    • ANSWER:
      Find an independent agent in your area at this link -

      http://www.iiaba.net/agentlocator/findagent.aspx

      Or you can go the old fashioned way and look in the Yellow pages.

29. QUESTION:
    What does an insurance broker do?
    I know it is something to do with insurance, but that's all I know. What schooling do you need for this job and what is the general pay? What does a typical day usually look like for a broker? Do they work for a company or on their own?

    • ANSWER:
      An insurance broker is a liaison between an insurance company and a company or person looking for insurance. The big insurance broker's business usually consists of finding policies for companies. For example, a company may come to a broker and describe what kind of business it does. The broker will help determine what kind of coverage that company needs, i.e., general liability, property, professional liability, employee liability, theft, etc. and then will negotiate with an insurance company or several insurance companies that will issue the policies. The broker will generally collect the premiums and send them to the insurance company, receive notice of claims or losses and transmit those to the insurance company, and otherwise serve as a go-between. In my experience, insurance brokers generally work a fairly average nine to five, Monday through Friday work schedule, although insurance brokers would probably tell you that they work harder than that. Most insurance brokers start out working for a company, but with experience can open their own agency. I don't know what kind of education insurance brokerages require. I've met several people who started out in clerical positions in insurance broker companies right out of college, or sometimes high school, and then were promoted to higher positions in the company. I don't know, however, whether they were also taking classes while working.

30. QUESTION:
    i would like to start a insurance broker agency, i have 4 years experience working in insurance agency.?
    i have life & fire & casulty licenses. what do i need to get in addition to start a broker inusrance company, also i have limited budget, that i would like to start working from home? is that possible to start a broker insurance firm? please advise!
    thank you.

    • ANSWER:
      I have a few alternatives...
      1 Have you considered partnering up with another like minded ambitious individual? or....
      2 - have your considered a business within a business... for instance work for an insurance brokerage as an insurance producer, getting a moderate salary as your bring in business equal to the salary agreed upon. This allows you to have your overhead & liability covered while you build your name...not to mention health insurance. This is a much smarter way to start your own business.. your production with the company is directly related to the amount of business your bring in. and one more thing...if you leave the company arrange for an on going commissions for at least 3 years until your get your business up and running. always leave on good terms and at your own recognizance - never burn bridges.. the insurance industry is very big.. but very small.

      and one more tid bit of advice... comming from someone who has been there done that...
      don't use your savings... build your name with a reputable company as an insurance producer in an insurance brokerage.

31. QUESTION:
    what experience do you need to become an insurance broker?
    After being an Intern for 2yrs at an Insurance Corp., I have decided I want to become an Insurance Broker after I graduate college. Will this internship experience help me to gain an internship/job with a brokerage firm? Should I wait a few yrs. before becoming a broker to gain more knowledge of insurance or just jump right in to the business? Will I make a good salary in the beginning? What is a prestigous brokerage firm on the East Coast in the Philadelphia,New York, New Jersey area?

    • ANSWER:
      Selling in most cases including Insurance is done on Commission unless your company will start you out on a draw that you will get started with or at some point have to pay back possibly. 1st get your license and work under someone else to gain some experience say a year or so. then after that if your still liking the business break on out into the business and open your own office. once you get into the business more you will find the more Prestigious firms. However Prestige is one thing and bottom line is another. I'd rather have more money in my pocket and a little less Prestige...

32. QUESTION:
    How much does a homeowner's insurance broker make?
    I am in the mortgage industry and i assume it would be an easy layup to cross sell homeowners insurance with every mortgage transaction.

    Any input from an experienced broker/agent?

    • ANSWER:
      In many states, having dual licenses like this is illegal, as it's a conflict of interest.

      Commissions range from 15% to 20% - but you'd probably have to split it with the agent you work for. You're not likely to get a contract with a carrier directly, as it's not your primary business.

33. QUESTION:
    How can I become Insurance broker?
    I wanted to become Insurance broker, what are the conditions and the requirements needed?

    • ANSWER:
      You don't mention what State you reside in. You should check with your State's insurance department web site to see what their exact requirements are. I can say in general that most States will require a certain minimum number of hours of pre-licensing education (35 to 40 hours). You then will have to successfully complete an examination that will test your technical insurance knowledge and your knowledge of the insurance rules and regulations of your State. To get your license there may be some licensing fees and you may have to submit fingerprints.

      Even after that is successfully negotiated almost all States have requirements for continuing education. The State will mandate that minimum credits be completed usually every two years. Failure to complete continuing education will result in the suspension of your license.

      Good luck and best wishes for your success.

34. QUESTION:
    How is an insurance broker paid?
    I just got my license and want to buy a car. However my dad said it'll cost over 00 for me to be insured on my own car. I'm thinking about going to a broker but don't want to have to pay them seeing how i'll already be paying a tonne for insurance. Do I have to pay them at all? Or does the insurer give them commission? How does it work?

    • ANSWER:

35. QUESTION:
    Would anybody please tell me what do I have to do to become a car insurance broker?
    I am interested in car insurance industry and would like to become an insurance broker. I don't know the course or the line to follow.

    • ANSWER:
      First, you go to your state insurance department website, and buy the study materials. Then, you take and pass a test. Then, you find an insurance company willing to let you sell their insurance, or, go work for an independent agent as a "producer", on a commission split basis.

36. QUESTION:
    After I receive my fire and casualty license, how do i become an insurance broker? Thank you.?
    I have passed my test to obtain my license for fire and casualty, I want to become an actual insurance broker, any advice? Thank you.

    • ANSWER:
      My advice - go work for another broker, build up your book, learn how the business works.

      The next step after getting your license, is getting companies to give you contracts. With no experience and no book to roll over, it's almost impossible to do this. You'll need to build a book and get a few years insurance experience under your belt.

37. QUESTION:
    How to become insurance broker in IL?
    Can anyone share the information on what is the procedure for become insurance broker in Illinois. I already have my P&C and Life&Health producer license. Who should I contact. I appreciate any help!

    • ANSWER:
      Your next step, technically, is to find insurance companies willing to let you sell their insurance.

      But with no experience, and no idea how the business works, this probably isn't going to happen. You REALLY need to contact a few local agencies, and see if they'll take you on as a producer - an insurance salesperson. They'll teach you how the business works, and you'll find out if you can actually sell insurance or not - and you'll get to use their contracts.

38. QUESTION:
    How do you become an Insurance Broker?
    How do you go about becoming a broker? I heard that getting a bachelor's degree in finance helps.But I met people who don't have a degree and are sucessful insurance brokers? How do you go about doing that...

    • ANSWER:
      If you are a resident of the US, you first have to get an Insurance license. That can be done by taking and passing courses. The state Insurance Department can direct you to the persons giving the courses.
      When you are licensed, you have to get a job selling insurance. You then become an Agent for one or more insurance companies.
      Get experience, take and pass some more courses, get licensed as an Insurance Broker. In this case you become a representative of the policy holder rather than an agent for an insurance company. The difference: you place insurance with any company as a broker.

39. QUESTION:
    why would a star topology be the best selection for a insurance broker office?
    i would like to know why a star topology be the best selection for insurance broker office, rather than a bus or a ring.

    • ANSWER:
      Star topology is the most reliable and simplest method for any LAN. Bus is outdated and token ring is normally used for high traffic (service providers etc..). Star is the best choice for your network.

40. QUESTION:
    Is the service from a Life insurance broker free?
    Hi, can you tell me if using an independent life insurance broker is free and get paid by commision just like a Real Estate Agent?? Thanks

    • ANSWER:
      The service of an insruance broker is the same as the services of a Reasl Estate agent. Both do not charge a consultation fee and they are compensated by a commission based on the size of the sale when they make one. The biggest difference is that the commissions an insurance borker recieve come from the company, and do not come out of your pocket. IE: a Real Estate Agent will take a % of what you sell your home for, meaning you don't actually get all the money that your home sold for. An isurance agent gets paid out of company profits, so when you get your claim amount or cancel your policy, you get the full amount...no commissions are deducted for the agent.

      The commission amount varies depending on the company and the actual product.

41. QUESTION:
    Can I switch my life insurance broker?
    I have life insurance through Northwestern Mutual. I like the insurance, but I'm not too fond of my broker. Can I buy more Northwestern Mutual life insurance through a different broker (can I start a new policy through a different Northwestern broker)? What I mean is I would like to keep what I have with Broker A and buy more life insurance with Broker B? Both of them work for Northwestern Mutual. Am I obligated to continue to purchase insurance through Broker A because they both work for Northwestern? I hope I am being clear. Thanks.

    • ANSWER:
      lifeinsurance.awardspace.info - try this one. I have their insurance and, as remember, they can provide such a service.

42. QUESTION:
    How do I get my auto insurance broker license in CA??
    I bought a car last week and the dealer had an agent come and take pictures and give me insurance right at the spot, I like doing what he is doing but have no idea what i have to do, can you please tell me how to get my auto insurance agent/broker license in CA and if I have to have an office or I can just work on my laptop from home? Thank you

    • ANSWER:
      Insurance is run by Departments of Insurance in each state, so do a dearch for California Insurance department and it will give you the requirements for a license.

      Good luck!

43. QUESTION:
    How can I become an independant insurance broker? I want to set up a insurance broker firm in the UK.?
    I've been working as an Insurance advisor for the last couple of years. Also, I have some tele-underwriting experience.

    • ANSWER:
      I would suggest you make an appointment with the licencing board in our area and discuss this with an experienced broker, step by step.
      There are necessary requirements for establishing an independent brokerage firm and it is best to know exactly what these are beforehand.

44. QUESTION:
    Must an Insurance Broker disclose its handling fee?
    Must an Insurance Broker disclose what its handling fee is to the client, before they go ahead with the policy?

    Could you provide me with a link that states this? (if they have to)

    • ANSWER:
      Yes - It's called a Broker Fee Agreement. A Broker Fee Agreement letter must be signed by the insured. So ask him to see the signed Broker Fee. If you need a sample let me know.

45. QUESTION:
    Romanian citizen want to be an insurance broker?
    What are the regulation for the non UK citizens in order to be an insurance agent in England. How you Obtain a license to become a broker? Thank you

    • ANSWER:
      http://www.ukba.homeoffice.gov.uk/workingintheuk/eea/bulgariaromania/applying/

46. QUESTION:
    What are the requirements to become a life insurance broker in California?
    Do I need to become an agent first before I can become a broker? What are the requirements? What are the costs of being a broker?

    • ANSWER:
      depends on the company you apply with. Some brokers will offer training, some won't. As far as requirements you have to write an exam to get your licensing. Check with your local state insurance department. Costs of being a broker? Again, depends on the company. Most brokers are independent self employed people, so you'll have an annual fee for your licensing, and ALL your expenses to run your business (rent, phone, internet, office furniture, marketing materials, etc)

47. QUESTION:
    What are the responsibilities of an insurance broker in New York State?
    Does the broker have to file policies with the state? Besides finding the right coverage for the insured client, what would the daily tasks be for the broker to do?
    And what are the names of different computer programs that brokers use to do their work?

    • ANSWER:
      I assume from the wording that you are not an insurance professional at this time and are wanting to become one?

      Insurance policies are "bound" or contracted with the individual insurance companies. The insurance companies have compliance filings, etc with each state in which they do business. The majority of an agent's day is spent maintaining existing policies by answering questions, resolving errors and changes or one type or another. Lots and lots of records and following up with clients, underwriters and assorted support personnel. If you're dealing with non-admitted carriers, you can count on double everything.

      A broker is an agent that works with more than one carrier. Lots and lots of different underwriting criterion to memorize.

      I suggest you sit down with a broker and have him/her walk you through their day.

      EDIT NOTE: Typical to any business. Microsoft Office and whatever agency management program that agency uses such as Applied or Tam. Quoting is done through the carriers' websites and/or a rating system that as multiple companies in it such as FSC. One stop shopping. Sometimes you'll need the old fashioned standardized forms called Acord forms. Those are used (rarely in most agencies) get send out for quotes and to supply clients, mortgage companies and additional insureds with assorted proofs of insurance.

      It would help if I knew where you were going with this.

48. QUESTION:
    Difference between insurance Broker and Agent?
    What are the pros and cons of being an agent or a broker
    in the life insurance insdustry?
    i just passed my Life and health exam and i am looking for options here?
    but i dont know if i should go as a exclusive agent, or a broker?
    can some one tell me what are the PROS AND CONS?

    FOR EACH position?

    • ANSWER:
      If you go to work as an exclusive (or captive) agent then you can ONLY sell the products of that company (whether or not it makes sense for your clients). As a broker you can sell dozens of other carriers AND the carrier you'd work for as a captive agent BUT you'll make more money per sale AND you can find the best product for your client.

49. QUESTION:
    Buying private health insurance, broker or direct?
    I need to purchase a private individual health insurance plan. I am a little confused if I should use a broker or just go direct. There seems to be so many plans out there. I live in Las Vegas, NV. I have received quote both ways and there price seems to be around the same thing so I don't know if there are added benefits from using a broker as to going direct, anyone have any experiences?

    • ANSWER:
      You may be using the term "broker" interchangeably with the term "agent." These are two very different things, but it's OK, we all do it. A true broker will charge you a fee for their services, while an agent will be paid only by the carrier. So answering your question as written, I would recommend doing your own research and going direct.

      However, I would instead use an agent or producer as they are sometimes called. This person will act as your advocate at no additional cost to you. They get paid when you pay your bill, so they have an incentive to keep you happy. They will usually audit your policy every 12-18 months to make sure you are still on the best plan for your needs, and keep you updated about new programs available.

      I would also recommend using an independent agent rather than a captive agent. This will allow them to search the entire marketplace for the best deals and coverage, rather than be limited to just one carrier.

      You do have to be careful though. Ask your agent up front to ensure they do not charge any admin fees or anything else on top of the premium the carrier charges.
      ---
      edit to clarify. I did not mean to imply that a broker would not be paid by the carrier, but instead that a client has no responsibility to pay an agent directly. I can see how that would be confusing in my original answer, however.

50. QUESTION:
    What made you choose your current insurance broker?
    Does your company offer benefits to your employees? If so, what was it that made you choose your broker? Was it a referral? A personal friend? Did the broker approach you and win your business, and if so what was it about them that gained your confidence in their abilities?

    Easy ten points for you for the best answer, and your feedback would help me tremendously... Everybody wins!

    • ANSWER:
      I haven't used a broker in about 35 years, and with the money I saved I almost managed to pay off the mortgage.

      What are "broker's abilities" ??