Insurance agents and brokers bring buyers and sellers of insurance together. Are

Question

Insurance agents and brokers bring buyers and sellers of insurance together. Are there any differences between an insurance agent and an insurance broker? Are these differences important to the insurance consumer? Why do life insurance agents and property insurance agents have different grants of authority? What factors should the consumer consider in choosing a property insurance agent? A life insurance agent?

Blue Cross and Blue Shield insurance organizations provide health insurance to millions of Americans. What is the difference between Blue Cross and Blue Shield? In what ways is Blue Cross insurance similar to the other kind of insurance? In what ways is it different? Please explain your answer.

Explanation / Answer

There is very little difference between an agent and a broker. An agent such as a real estate agent is an individual that acts for a client on their behalf when buying or selling a house. The agent performs certain actions to bring about a completed result such as the sale of the house. A broker also acts as an agent on behalf of a client. A broker can negotiate for the client when buying or selling a house. The broker has the power to ultimately affect the outcome of the sale.

As agents they are not accountable for the advice they give you, but the principal or the insurance company is. So you can take the insurance company to court or to Insurance Regulatory and Development Authority (Irda) for wrong advice but not the agent. The insurer in turn can reprimand the agent by cancelling his licence. But you can drag an insurance broker to court. That

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