They can work full time in. An insurance agent represents one or more insurance companies and sells their policies for a fee. They can work full time selling insurance for an agency or as independent contractors. An agent acts as a conduit to provide information to insurance buyers.
The insurance buyer then has the option of choosing between the policies and contracts available from the insurer that are offered through the agent. These policies and contracts are decided through contractual agreements that insurance agents have with insurers to comply with certain guidelines. In the insurance world, an agent is a person who sells insurance policies on behalf of an insurance company. An agent can be captive or independent.
Both agents and brokers are licensed in the state in which they operate and must comply with all applicable statutes and regulations. Agents keep careful records so they can quickly and easily find the information they need to help their customers. Either way, the typical insurance agent will spend most of their time engaging in some type of marketing activity to identify individuals who might need new or additional insurance coverage, provide them with quotes from the companies they represent, and persuade them to sign the new insurance contract. If a customer needs to change information because they moved or renovated their home, the agent will guide them through the changes and make recommendations for new coverages.
A captive agent isn't stuck in your office; it means you sell policies on behalf of a single insurance provider (such as Square One licensed agents). In later years, the agent can receive between 3% and 10% of each year's premium, also known as renewals or final commissions. A homeowners insurance agent, for example, might start by asking for details about a client's home; a customer who is a 60-year-old homeowner will have very different insurance needs than a customer renting a new apartment. These companies often offer the safest products at reasonable prices, with an emphasis on compensating and maintaining quality agents.
The key difference between insurance agents and insurance brokers is that agents work for one company (or companies) and only sell those companies' policies to customers. There is an additional category of agents called independent agents who can work with different companies in a similar way to insurance brokers. While brokers are looking for policies from several different companies, an agent must sell policies from one or more of the insurance providers they represent. While independent insurance agents may offer you more options when working with companies that compete for your business, they generally only sell the insurance options that will provide them with the biggest returns.
Insurance agents, often referred to as “captive agents,” often represent an insurance company. Insurance agents typically sell on behalf of a small number of companies (if not just one), which means they have in-depth knowledge of the products they sell. Many agents are now fortunate enough to receive compensation for a month or two of training before being placed on commission alone.