An insurance agent makes money from commission on sales of insurance to businesses or individuals. Some commission rates are as high as 8% for the top agents. Generally, most commission rates are between two and eight percent of premium payments, depending on state laws. Insurance brokers understand the customer's circumstances, wants and needs to get them the best insurance coverage for their dollar. They know exactly how to market their products to their customers, where to buy coverage from and where to get it at a better rate. The job of an insurance broker is to get the best deal for a customer. There are many ways that brokers make money. One way is by having an office. The office will provide all of the paperwork needed to sell a client's policy. The office will also be where the customer receives all their information related to their policy. Many insurance brokers will have their own business websites. These sites often sell insurance policies directly from their broker. Customers can also search out policies through this site, or through brokers who have their own sites. Brokers who work for multiple companies will usually sell their policies to various companies at a time. When selling a policy from a single company, a broker may work solely for that company. Other companies hire a broker that have multiple offices, as well as online offices. This allows the broker to sell policies to a variety of different companies and a variety of different states. This type of broker is most common in the health care industry. An insurance broker should be approached by a potential client with the intent of purchasing an insurance policy from them. It is the insurance broker's responsibility to make sure a client gets the right quote for his or her policy, and also to ensure that the buyer of their insurance policy pays the most amount of premium. Insurance brokers should always have a list of satisfied customers in front of them. When working with a potential client, this list should include the names and telephone numbers of people who have purchased insurance policies from the person. This list can help an insurance broker to determine what kind of coverage is appropriate for a certain person. They can then offer an insurance policy quote based on the information in the list of satisfied customers. When working with an insurance broker, a client should ask for a list of references. If the broker is willing to give such a list to a client, then they will be able to tell what kind of client they are dealing with. Insurance brokers are usually well educated about their profession. They also know what kind of insurance coverage is most appropriate for a particular situation. Therefore, they will be able to properly sell a policy to a client. Check out this post: https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/broker that has expounded on the topic.
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