Florida Life and Health Insurance License Practice Test

The primary distinction between an agent and a broker in the insurance industry is that an agent represents one insurer. Agents operate as representatives of insurance companies, meaning they are contracted to sell and service policies for that specific insurer. This role typically means agents have a direct relationship with the insurance provider and earn commissions based on the policies they sell for that company.

In contrast, brokers function as intermediaries who can work with multiple insurers to find the best coverage options for their clients. They do not represent a single insurance company; instead, their role is to assess various policies from different insurers to offer clients a range of choices tailored to their individual needs. This flexibility allows brokers to have a broader perspective on what is available in the market.

Understanding this distinction is crucial for anyone looking to navigate the insurance industry or pursue a career in it, as it clarifies the roles and relationships between the parties involved in the buying and selling of insurance policies.