A broker-agent can be licensed to sell life insurance,
disability and health insurance or fire and casualty insurance.
In California, the term broker –agent is used to describe two
distinct types of licenses. The title broker-agent does not
automatically convey both types of licenses upon the holder,
unless he or she qualified for and was issued both types of
licenses.
A broker-agent acting in a broker-agent capacity is generally
selling insurance with companies that have not appointed him/her.
In essence, he or she is shopping for or brokering the insurance
among many insurance companies fro which he or she will receive
a sales commission or broker fee. In this capacity, the broker-agent
represents you, the insured, not the insurance company. This
license allows the broker agent to charge you a brokers fee
for their services, in addition to any commission they might
receive from the insurance company. The fe should be reasonable
for the services received.
As an informed consumer, you should always obtain copies
of the documents relating to your insurance transactions.
Ask for a copy of your insurance applications, your binder(temporary
evidence of proof of insurance of your actual policy), a
receipt fro the premiums and/or fees that you have paid
and showing the balance of premiums owed, if any. When paying
monies to a broker-agent, always you paid and the balance
due, if any. The receipt and application should specify
the actual insurance company that is being used.
Brokers fees are not mandatory and
can be negotiable and should be agreed upon in writing between
you and the broker-agent before any insurance transaction occur.
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