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Simple English definitions for legal terms
insurance broker
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A quick definition of insurance broker:
An insurance broker is a person who helps others find and negotiate insurance contracts. They act as a middleman between the person who needs insurance and the insurance company. The broker gets paid for their services, but they do not work for the insurance company. Instead, they work for the person who needs insurance. The broker helps the person find the best insurance policy for their needs and budget.
A more thorough explanation:
An insurance broker is a person who helps individuals or businesses find and purchase insurance policies. They act as intermediaries between the insured and the insurer, negotiating contracts of insurance as an agent for someone else. Insurance brokers are compensated through commissions paid by the insurers.
For example, if a small business owner needs to purchase liability insurance, they may contact an insurance broker who specializes in commercial insurance. The broker will gather information about the business and its risks, and then search for policies that meet the business owner's needs and budget. The broker will present the options to the business owner and help them choose the best policy.
Another example is a person who needs to purchase health insurance. They may contact an insurance broker who specializes in health insurance. The broker will gather information about the person's health needs and budget, and then search for policies that meet their needs. The broker will present the options to the person and help them choose the best policy.
Overall, insurance brokers provide a valuable service by helping individuals and businesses navigate the complex world of insurance and find policies that meet their needs.