Agent

What Does Agent Mean?

In the context of insurance, an agent is a professional authorized to sell insurance on behalf of a company. Licensed by the state, insurance agents can be either employees of an insurance company or independent contractors. Regardless of their employment status, their primary role is to sell insurance products.

Insuranceopedia Explains Agent

To become an insurance agent, an individual must pass state exams to obtain a license. Unlike captive insurance agents, many agents operate independently and can sell insurance products from multiple companies rather than being limited to just one. Insurance companies hire agents as either employees or independent contractors to help generate business and increase sales. These professionals are often compensated through commissions, but it is also common for them to receive salaries or a combination of salaries plus commissions.