Legal Blog

The Weekly Scenario: Insurance Agent vs. Insurance Broker

Question: What is the difference between an insurance agent and an insurance broker? Answer: Insurance agents are typically representatives of the insurance company.  Such agents are required to be licensed in the states in which they do business as well as with the specific companies they represent.  While some agents do the majority of their insurance business with a single company (potentially even prohibited from selling other companies’ insurance products), many agents can be licensed with more than one carrier and therefore can sell from all of those companies. In contrast to an insurance agent, an insurance broker represents a client.  Brokers have specific bonding requirements in the state(s) in which they are licensed.  The broker will typically represent multiple companies at the same time. Comment:  In considering the purchase of life insurance there are many questions to ask your insurance professional. There are all sorts of considerations ranging from prices to product and everything in between. As always, if you have any questions or would like to learn more, please let me know.


Steve Shane Head Shot for webSteve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates. You can connect with Offit Kurman via our BlogFacebookTwitterGoogle+YouTube, and LinkedIn pages.  You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.