This code of conduct outlines the insurance producer’s responsibility as a fiduciary.Ī fiduciary is a person or organization that acts on behalf of another person. In addition to the regulatory education credits required to uphold their license, insurance producers must also adhere to a strict code of conduct. Each state/province has its own set of regulatory rules to maintain an active license. Insurance producers can hold licenses in the state/province in which they live - this is called a resident agent or statutory agent - or in other states/provinces. Continuing education and refresher courses as well as a nominal license fee may be required to renew the license each year. Licenses for insurance producers must be renewed periodically. After they have done all that, they will be authorized to sell insurance products on behalf of insurance companies. To become an insurance producer, a person must complete the necessary training, pass relevant exams and obtain a license. Insuranceopedia Explains Insurance Producer The term “insurance producer” is interchangeable with independent agent, captive agent, insurance representative or insurance broker. Maintaining a positive business relationship between the client and insurance company.Establishing payment methods for insurance premiums.Insurance producers are responsible for activities such as: For example, an insurance company may give the insurance producer 20% of the premium for the sale of a home insurance policy and 10% for an auto policy. The commission agreement depends on the contract the producer has with the insurance company and may depend on the type of insurance they are selling. Instead, they work on a commission basis and sell insurance for multiple insurers. Insurance producers often are not actual employees of insurance companies (with the exception of captive agents). For example, an agent may specialize in personal auto insurance or commercial farm insurance. Because of this, they must possess a significant amount of knowledge in their particular insurance subfield. An insurance producer is someone who has the proper licensing to sell insurance within a particular state or province and is responsible for the sale of insurance products on behalf of insurance companies.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |