 
Health Insurance California >> Choosing Insurance Broker Agent >> Defining an Insurance Broker agent Defining an Insurance Broker-Agent A broker-agent could be licensed to sell life insurance policy, disability and health insurance or fire and casualty insurance coverage. In California, the term insurance broker-agent is used to describe two different types of licenses. The title insurance broker-agent does not automatically convey both types of licenses upon the holder, unless he or she is qualified for and was issued both types of licenses. An insurance broker-agent acting in a broker-agent capacity is usually selling insurance policy with companies that have not appointed him/her. In essence, he or she is shopping for or brokering the insurance policy among many insurance companies for that he or she would get a sales commission or brokerage fee. In this capacity, the insurance broker-agent represents you, the insured, not actual the insurance company. This license allows the insurance broker-agent to charge you a broker’s fee for their insurance services, in addition to any commission they may get from the insurance company. The fee must be reasonable for the insurance services received. Broker fees are not obligatory and can be negotiable and must be agreed upon in writing among you and the insurance broker-agent before any insurance transaction takes place. As an informed consumer, you must forever obtain copies of the documents relating to your insurance policy transactions. Ask for a copy of your insurance policy applications, your binder (temporary data of proof of insurance good for actual insurance policy), and a receipt for the premiums and/or fees that you have paid and showing the balance of insurance premiums owed, if any. When paying monies to a broker-agent you must always insist on a signed and also dated receipt evidencing the amount you paid and the balance due, if there is any. The receipt and the application must specify the actual insurance company, which is being used. California Health Insurance Group suggests you do business with proper licensed companies, unless none are available. Your lender or lien holder would require this information and might or possibly will not approve of the insurance company your agent has elected to use. Never sign any blank forms or blank applications. This only invites mistakes, misunderstandings, and all possible fraud. All applicable questions must be read and answered by the person applying for the insurance. Read the form or the application before you sign and date it. If you have questions, ask the insurance broker-agent. If you cannot get pleasing answers to your question, it may be good to avoid signing a document you don’t understand. Ask for copies of your records: this avoids misunderstanding at the later date. Make certain that you have in writing and signed by the insurance broker-agent, precisely what insurance coverage you have actually purchased, the name of the insurance company, the amount of the insurance coverage, the deductibles (if any), and the copy of your insurance broker fee agreement (if any). Verbal assurances that “you’re covered” are very difficult to prove if you are facing a claim and if you have no documents of evidence for insurance coverage. Even the assistance we offer would not allow us to resolve questions of fact. Be truthful and very accurate in your replies to the questions asked to you, as they will surely be verified. Omitted or inaccurate answers would only cause delays, rejection, and/or rescission of insurance coverage. If an insurance broker-agent makes an offer to you that sounds too good to be true, it probably is. Ask them to put it in writing and then date it. If they refuse, it may be time for you to shop from another insurance broker-agent. Don’t ask your broker-agent to break any rules, “just this once,” as you both can be prosecuted for severe fraud against an insurance company. Your professional insurance broker-agent is there to assist you and therefore must have your best interest at heart. Be an informed consumer and check with the Department of Insurance if you have further questions about the insurance company your insurance broker-agent has recommended or appropriateness of the transaction. Make certain that you have in writing, exactly what insurance coverage
you have paid for, the name of the insurance company, the amount of the
deductibles (if any), policy exclusions, total premiums due, and also
the details of when your insurance coverage would take effect and whether
any copies of premium finance arrangements are put in place on your behalf.
You don’t desire to experience an insurance claim at a time when you have
no insurance coverage in effect. Choosing Insurance Broker Agent
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