© 2010 MyHealthInsuranceAdvisor.Org

Broker

Is a designation that is loosely defined and varies from state in terms of its ethical and legal implications. The general imeaning implies that an insurance broker is one who represents the consumer or client’s interests rather than that of the coverage provider or insurance company.  An insurance broker designation generally carries a greater responsibility to seek out the products that best suit the needs of the consumer at a reasonable price.  This is in contrast to an agent designation where an agent may represent a single or limited number of entities. Not all states recognize the term legally in connection with sale of health care coverage or health insurance.    

Particular caution should be given when the term is used in connection with the Internet.  It is often used to make it appear to the consumer that they are representing the consumer when, in fact, the consumer is simply being passed to a website to select a plan from a menu and submit their own application.  One cannot be a broker when they are directing a consumer to a specific company’s website to make a choice?  Be cautious!    

Glossary © 2010 MyHealthInsuranceAdvisor.Org