Term Of The Day – Broker
A Broker and an Agent are not the same thing.
An agent is an insurance company’s representative by way of agent-principal legal custom. The agent’s primary alliance is with the insurance carrier, not the insurance buyer.
A broker has no allegiance to any insurance company or TPA under most circumstances. They generally have no contractual agreements with insurance carriers and relies on common or direct methods of perfecting business transactions with insurance carriers.
This can have a significant beneficial impact on insurance negotiations obtained through a broker.
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