This lesson focuses on the following topics:
•WHAT DOES AN INSURANCE AGENT DO?
•RESPONSIBILITIES OF AN INSURANCE AGENT
•SUMMARY

What Does an Insurance Agent Do?

The agent system for the distribution of insurance has worked pretty well over the years, with agents marketing the products of the insurer and, at the same time, educating the consumers on how to limit risks and make better choices regarding their insurance needs. As insurance costs have increased dramatically in the last decade, agents have achieved a key role in planning cost saving measures for individuals as well as small businesses.

Responsibilities of an Insurance Agent:

The insurance agent needs to:
• Work with clients to evaluate their need for protection
• Educate the client by explaining the various plans available and by providing
appropriate cost indexes
• Make specific recommendations that suit the client's objectives and budget
• Encourage the client to act in a timely fashion to assure that the proper coverages re in place when they are needed. The agent also sees to it that accurate and omplete information is provided to the insurer to make sure that the client gets the ery best premium available.
• Keep in contact with the client, and periodically review or update their coverage. The
agent should suggest appropriate changes, and counsel clients on ways to reduce
cost. Often they will need to assist their client in reviewing the need for legal and tax
compliance, and recommend other professional assistance when necessary.
• Assist with claims, answer questions and serve as the mediator in helping their
clients deal with insurance companies.
• Assist business owners in communicating their benefit packages to their employees,
often assisting the employee in seeing how the benefits coordinate with their
personal financial programs as well as those provided by government entities.

SUMMARY:

In this lesson, we touched on the basics of insurance. We discussed some definitions of insurance and the insurance policy. We learned about the application process for the insurance policy, the cancellation processes at different stages during the policy, and some important dates which need to be taken into consideration by the insurer. We also discussed different types of insurance which mainly include Life, Health, Long-term, Personal property, Disability and Automobile. At the end of the lesson, we discussed the major responsibilities of the insurance agent, and the important role a good relationship between the client and the company plays.