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| FAQ: |
Do brokers have access to coverage options from every insurance company? |
| Answer: |
Yes.
This is what distinguishes a broker from an agent. Brokers do not represent
insurance companies. They represent you. This means they have access to every
insurer in the state. |
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| FAQ: |
My company doesn’t have a budget for benefit consulting. Is it expensive to use a broker? |
| Answer: |
The
simple answer is "No", but this can be confusing. The insurance company
you decide to do business with pays the broker a commission. There are no
out of pocket expenses for the broker's service. |
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| FAQ: |
We
have been with the same insurance carriers for many years. Isn't it a lot
of trouble to change our group over to a different carrier? |
| Answer: |
It
can be. The important question here is who will be managing the changes?
Look for a professional who can find a plan that suits your needs and will
then help to implement it so that the transition is as trouble free as possible.
Ask your broker if they will manage the enrollment process for you. |
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| FAQ: |
Employee
benefits is just one of the many hats I wear at my company. Sometimes working
with the insurance companies can be a real time consuming headache. What
can a broker do to save me time? |
| Answer: |
A
professional will represent you to the insurance companies to make your job
easier. Good brokers know the insurance industry and understand the procedures
and processes of insurance companies. When you have a problem situation,
you should be able to call your broker to act on your behalf. |
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| FAQ: |
Because brokers are paid on commission, isn't there an incentive for them to make recommendations that will pay them the most? |
| Answer: |
There
can be, but it depends on the broker's perspective. It is likely that there
are brokers who make recommendations based on their own interests. Look
for a broker who has a long term view of your relationship. Expect your broker
to bring several options to you. Also, check references, investigate how
long the broker has been practicing and how long the clients have been with
the broker. You may also contact your state's commissioner of insurance to
check for any complaints they have on file. |
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| FAQ: |
Since the insurance company pays the broker a commission, does that mean my premium will be higher when I use a broker? |
| Answer: |
The
majority of insurance companies do not load or add the broker's commission
onto the premium, but some do. Your broker should be forthright in disclosing
the insurer's commission payment practices. However, keep your eye on your
bottom line. It's possible that the lowest premium could have a commission
included. |
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| FAQ: |
How do I know that the broker will be working for the best interest of my company? |
| Answer: |
It
is wise to obtain several references and check on them before you use a broker.
Ask questions about how much time and money the broker has saved the client.
Also ask if the broker is proactive in seeking better alternatives for the
client. Find out how the broker handles service issues. Don't just ask
for references. Check them! |
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| FAQ: |
Do brokers have an incentive to represent the same insurance companies, thus limiting my potential choices? |
| Answer: |
It
is true that insurance carriers do pay brokers incrementally for increased
business volume. It is also true that every broker has access to every insurance
company as a possible carrier. Smart brokers know that trusting relationships
with CLIENTS are the way to build a long-term business. A good broker should
recommend and work with insurance companies who will best meet your needs
without regard for differences in compensation. Look for a broker who delivers
several options and discusses the alternatives. |
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| FAQ: |
Insurance
can be so complicated. The jargon makes it difficult to understand. Would
using the services of broker help me with this? |
| Answer: |
A
good broker will walk through the insurance jargon with you. You will become
better informed and this allows you to become a better consumer. Look for
someone who is willing to help simplify the process for you. |
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| FAQ: |
Can I improve my chances of getting lower rates if I get several brokers involved? |
| Answer: |
That
depends. If you involve several brokers who do an incomplete job then this
method will help you cover more of the market. If you find one broker who
does a thorough job then you will achieve your best result with less effort
on your part. Find someone who will be there after the initial search and
changeover to SERVICE your account. |
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