An insurance agent is a professional authorized to sell, service, or negotiate insurance policies on behalf of an insurance company or independently. Agents act as intermediaries between the insurance companies and the policyholders. They may represent one or multiple insurance companies and are responsible for matching their clients with policies that suit their needs.
Responsibilities of an Insurance Agent Include:
Selling Insurance Policies: Introducing and convincing potential clients of the benefits and coverage offered by a policy.
Servicing Policies: Handling the administration of the policy which includes updating policies as per the client’s needs, regular follow-ups for renewals, and providing optimized service solutions.
Negotiating on Behalf of Clients: Acting as an advocate for the client, including during the claim process or amending coverage before policy renewal.
Agents must comply with various state-specific regulations. Their professional conduct and licensing are regulated by state insurance departments. As a resource, individuals can check the National Association of Insurance Commissioners (NAIC) website, which offers information on regulations and provides a platform to check the credentials of insurance agents.
Licensing
Becoming a licensed insurance agent requires passing examinations that cover insurance fundamentals and state-specific laws relevant to each type of license, such as for life, health, property, and casualty insurance.
Types of Insurance Agents
Captive Agents: Represent a single insurance company.
Independent Agents: Represent multiple insurance carriers.
Comprehending the role and commitments of an insurance agent is crucial for individuals and businesses seeking insurance policies that expertly align with their requirements.
