All Agents and Brokers....?

Question

How do my fellow insurance agents and brokers feel about people using the term "agent" to refer to any insurance sales person? Is this 'no big deal' or is it a 'wrong that needs to be corrected?'

Answer 1

No big deal.  Most people don't care about the words we use and there are better ways to describe the differences.

http://www.clarifinancial.com

Answer 2

It doesn't bother me.  

It also varies by state.  Some states issue an agent's license, some a broker's license, some a dual license.  

I suppose as long as you don't say, "that monkey lady in a weird suit" I won't get offended.

Answer 3

Aaron,

The general public uses the terms broker and agent interchangeably without much regard to the difference between the two.

But from a legal standpoint the terms have significant differences that set the relationship between the customer, the salesperson and the company.

So it is not a wrong that needs to be corrected it is, instead, a legal relationship that defines your duties and obligations to the respective parties to the contract.

Answer 4

As an 'agent' we have to remember that our primary obligation is to the company or companies we represent.  We are their agent.  My contract and my duty is to the company.    So I would think agent would be the correct term for a salesperson.  I must agree with the others that have answered this question that to the client (i.e. the public) it would just be more confusion.

Answer 5

I don't think its a big deal.  If I always worked in the capacity of a broker it might bug me, but certainly not enough to say something about it.

Answer 6

Years ago I was an agent with Farmers Insurance Group.  I've been a broker for 20 years.  The difference, from my perspective, is that an "agent" represents the insurance company to the insured or prospect.  A "broker" represents the insured or prospect to various insurance companies.  I'd rather be a broker....

Answer 7

Personally it doesn't bother me.  Most of my clients have a hard time understanding deductibles and policy limits.  So to try and explain the difference between an agent and a broker would just be a big headache.