Lucious Adcock posted an update 2 months, 1 week ago
An insurance broker insurance agent makes a lot of money by selling insurance to companies or individuals. Most commissions vary between two and eight percent of premiums paid, based on state laws. An agent also knows the personal circumstances of his or her customers, so he or she knows how best to get them the best deal on insurance. The commission rate is determined by the size and scope of the business involved, the competition among insurance agents, the risk involved and other factors, like the type of insurance, the company offering the insurance and the customer’s personal situation.Insurance brokers’ commissions vary widely. Some brokers, who have a lot of experience in the field, make a large percentage of their revenue from selling coverage for small businesses or individuals. These brokers get to know people who own small businesses and need insurance coverage, and they refer them to an agent who can get them the right kind of coverage at the right price. Some brokers sell only individual policies to people, while others specialize in selling group insurance plans for small businesses and individuals. The commissions for these types of brokers are often based upon the extent of their knowledge about the company or individual in question.When a person purchases insurance through a broker, that person has to pay a certain amount, called the insurance broker’s commission. In return for the commission, the broker must refer the customer to a suitable insurer. In many states, the insurance broker must pass a state exam and meet other state standards before he or she can sell insurance. This certification is a condition of insurance broker licensing in most states. As an insurance agent, your job may be to buy insurance or to provide advice on how to obtain a better rate. You may also advise potential customers on which plans would be the best for them. But in order to do that, you have to understand your potential client’s personal situation and understand their needs.