What Is the Difference Between an Insurance Broker and an Insurance

question 15

Multiple Choice

What is the difference between an insurance broker and an insurance agent?

• A)An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies.
• B)An agent requires a commission payment after the deal is made, while a broker requires the service charge to be paid before the deal is made.
• C)An agent represents the insured, while a broker represents the company.
• D)An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract.

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Definitions:

Cross-Trained Employees

Individuals within an organization who have been trained in multiple skills or tasks, allowing them to perform a variety of roles as needed.

Throughput

The rate at which goods or services are produced or processed in a system.

Break-Even Analysis

A means of finding the point, in dollars and units, at which costs equal revenues.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.