An Insurance Agent is a person who has a license sanctioned by a state and has been authorized by the Insurance Company for selling Insurance. An Insurance Agent is a Representative of the Insurance Company who solicits and serves the Insurance Policyholders.
The knowledge of an Insurance Agent regarding an insurance transaction is also considered as the Insurance Company’s knowledge. The company is responsible for unfair practices of the Insurance Agent and the company is answerable to the customer for this.
If the Insured Person serves a notice to the agent, it will also be considered as a notice served to the company. An Insurance Agent is responsible for facilitating businesses, families, and individuals to choose Insurance Policies for protection of health, life, and properties.
Usually, the Insurance Agents sell a variety of insurance types like property insurance, casualty insurance, health insurance, life insurance, disability insurance, and long-term care insurance.
For becoming an Insurance Agent, a person has to undergo the requisite training. For this purpose, most of the Insurance Companies look for individuals with graduation degrees in business or economics, but non-graduates are also eligible if they have previous sales experience or expertise in other business areas. Obtaining a license is also necessary for selling insurance in a particular state. For obtaining the license, the completion of Pre-Licensing Course and State Examination is required in most of the states.
For acquiring New Clients, Insurance Agents use the following methods:
The Insurance Agents can be categorized into two types:
Captive Agents: Captive Agents only work for one insurance company and is only responsible for providing business to that particular company. If they belong to the affiliated groups of the parent company, still they have to prioritize for bringing business to the parent company only. In return, the Captive Agent receives office allowances, advantages like health and life insurance, pensions, credit union membership, and continued insurance training.
Non-Captive Agents: Non-Captive Agents or Independent Agents represent and work for a large number of Insurance Companies. They work on the client’s behalf for searching a policy for them. In return, they are usually paid through commissions.