insurance brokers

An independent insurance broker is a person who is licensed by the department of insurance in the state (or states) where he or she conducts business. Licensure generally involves passing a written examination to show that the person meets minimum standards of knowledge regarding the business of insurance.
Independent insurance brokers are typically parties to contracts with several insurers by which the broker is authorized to write business (i.e., policies) for that insurer. In most states, each insurer files a notice of appointment of each broker with the department of insurance in that particular state. Independent brokers are usually compensated by the insurers they represent through payment of a commission that is a fixed percentage of the premium of each policy sold. This commission percentage may vary with the size of the premium or line of business. For example, insurers often pay higher commissions on commercial lines policies than they do on personal lines policies.