What Are Some Different Types of Licensees?
There are several types of licensees. The following list will state them and provide a summary of their work: Producer, which is any individual who sells insurance products; Nonresident Producer, which is an individual who uses reciprocity agreements to sell insurance in a state that has agreed to accept their home state’s licensing exams as valid; Temporary Producer, which is a non-qualified individual who can sell insurance for 180 days; Life and Health Agent, who is a person that can represent an insurance company and help facilitate sales with that company; Property and Casualty Agent, which is an individual with similar responsibilities as a Life and Health Agent, but can also sell insurance themselves; as well as Brokers, who are people who represent customers to insurance companies.
Types of Licensees
We’re going to take a look at some of the terms you need to be familiar with relating to types of licensees. A producer is any individual who sells insurance products. Nonresident producers use reciprocity agreements to sell insurance in another state. A reciprocity agreement means that one state honors the licenses issued in another state. If a producer lives in Georgia, and Georgia and Alabama have a reciprocity agreement, that insurance agent is allowed to sell insurance in Alabama, even though they don’t have a license specifically from Alabama.
Then, there are temporary producers who are issued for up to 180 days to a non-qualified individual to allow the sale of the insurance company. This is issued by the insurance commissioner, which is a statewide office that oversees the insurance industry. This usually happens when the original owner has died and the spouse is left to take care of the insurance company.
The only way for them to sell it is to be labeled a producer. Now, they haven’t met the qualifications to become one, but they’re allowed to be considered a producer for up to 180 days so they can deal with the sale of this insurance company. Then there are life and health agents who represent insurance companies to consumers. They act as a mediator between the two. They help with the sale life and health insurance, but they cannot guarantee coverage. They can just establish an agreement between the insurer and the insured.
Then, there are property and casualty agents who have more authority than life at health agents. They have similar jobs, but property and casualty agents are allowed to guarantee coverage. Then, there are brokers who represent the consumer to the insurance company. Brokers often work with several insurance companies. The advantage of using a broker is that this person deals with insurance on day in and day out basis, so they know a lot more about it than the average consumer. By hiring a broker, a consumer can many times make wiser decisions relating to insurance.
Provided by: Mometrix Test Preparation
Last updated: 06/27/2018