What Is the Difference Between an Insurance Broker and an Insurance

question 61

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 a deal is made, while a broker requires a 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:

Normally Distributed Populations

Populations that follow a normal distribution, characterized by a bell-shaped curve.

Z-Test Approximation

A statistical test used to determine if there are significant differences between means with known variance and a large sample size.

Two Independent Samples

A statistical method involving the comparison of two groups of data where the samples are collected independently of one another.

Larger Than 10

A description or condition referring to quantities or values that exceed the number 10.