Distribution structure

Agent vs Broker

An agent usually represents an insurance company, while a broker usually represents the buyer. In practice, many licensed producers act as both, and state law defines the terms.

Why it matters

The difference matters for who owes duties to whom. An independent agent in life insurance often shops several carriers, which feels like brokering. A captive agent sells one company. States use different words in statutes, so rely on the license and disclosure rules in your state. Families should ask which companies the producer can offer.

Source: law.cornell.edu

Read next, for agentsCaptive vs independent insurance agent: who owns your book?

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