Finding an Insurance Agency

An insurance agency, sometimes also known as an insurance broker or independent broker, brokers, solicit and/or sells policies for insurance companies through a variety of insurance carriers. Therefore they are not directly associated with any one insurance company. These agencies are regulated by the Department of Insurance. The responsibilities of such an agent include conveying information to customers, underwriting insurance and collecting payments. Their services are used by business and commercial organizations to provide adequate protection against unexpected events or risks.Learn more by visiting Insurance Agency

Insurance agencies can be categorized as either direct or indirect. Direct insurance agencies deal directly with a specific insurance company, whereas indirect ones indirectly connect themselves to various other insurance company agents. In case of direct agencies, the principal is the owner of the company that is covered by the policy. A policyholder can sell his policy to any company that he chooses. But in case of indirect agencies, the principal is an agent connected with an insurance company, who may not also sell the policy to the policyholder.

There are many types of insurance agencies. They can be classified as captive or third party agents, commission agents or independent agents, captive and direct insurers, indemnity carriers and public insurers. A captive agency sells only the policies of one insurance companies and does not provide any independent advice to the customers. A commission agent works on a per contract basis and sells policies of several insurance companies. An independent agent is not connected to any particular company and helps the policyholders to choose a policy that best suits their needs and budgets.

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