An insurance agency is sometimes call an independent agency or an independent brokerage. They write, solicit, and bind policies through many different insurance companies. One specific insurance carrier does not employ the insurance agency thus they can offer more insurance opportunities. They are able to choose which insurance carriers they would like to represent and decide what products they would like to offer then they can find their clients the best coverage at the best price.
How does an agency choose an insurance company?
- Coverage available
- Services provided to the customer
- The company’s financial stability
The insurance agency has a “contract of representation” with an insurance company. This contract allows the agency to bind coverage from a specific company for a customer up to the agreed upon limits. It I a legal agreement and provides the customer and agent flexibility to ensure the insurance needs of the customer are met and put into effect at the best time.
The law requires that an agency be licensed if it performs one or more of the following; Solicits applications on behalf of a health maintenance organization, delivers or receives a policy of insurance, inspects or examines any risk, receives, transmits or collects a premium, performs any other thing in the consummating or building of a contract of insurance.
How the Agency helps you the consumer
The main function of a health insurance agency is to provide help to both businesses and individuals that are either looking for or want to maintain health plans. They assist the consumer in finding the right plan by comparing health insurances and providers and make sure the coverage is right for your needs.