Brokers Versus Agents
These licensed professionals can help you find and choose the best plan for your business. They know:
- the best products available, and
- state and federal regulations to protect your business from liabilities. They’ve also satisfied licensing requirements that require them to keep up-to-date on Virginia’s insurance market.
A broker can direct you to products offered by a range of providers. An agent works with only one company and promotes that company’s products. Both may be referred to as “agents” and are licensed professionals in Virginia.
The broker or agent will help you:
- shop for the right plan for your company and provide one or more premium quotes
- discuss alternatives so that you understand your plan options
- implement the plan you select
- service the account, including solving problems with billing, eligibility, and claims
- do the legwork so you don’t have to spend the time
- get the most from the coverage you purchase
- expedite the renewal process
Finding and Selecting an Insurance Professional
 Here are several ways to find an insurance professional in your community:
- Contact associations related to health or small business.
- Ask trusted advisors, such as your accountant or attorney.
- Check with other business owners.
- Search online for a list of brokers from the National Association of Health Underwriters.
Broker-sponsored websites aimed at the consumer market fall into two categories:
- independent brokers whose primary interaction with clients is offline, and
- online brokers that specialize in selling insurance online.
Independent brokers may offer limited online capabilities but more personalized and administrative support. Online brokers may offer broader online capabilities but less ongoing support for billing, eligibility, and claims issues. Online brokers aim to have most consumer interaction occur online, but also offer telephone customer service.
Broker/Agent Locators
National Association of Health Underwriters (NAHU) offers names and contact information for member agents (brokers) in your geographic area, plus why to use an agent and a glossary. For more information see http://www.nahu.org/consumer/index.htm
American Agents Alliance, a nonprofit organization serving independent insurance producers and consumers, have a locator tool for finding agents in Virginia. These agents may offer different types of coverage and don’t necessarily specialize in health insurance. See http://www.agentsalliance.com
The Virginia Bureau of Insurance offers agent information at. http://boi.scc.virginia.gov/agentlookup
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Brokers charge a basic commission and sometimes additional fees for their services.
Commissions are usually based on a percentage of the annual premium and are included in the premium you pay. In other words, the commission is built into the insurer’s rates; everyone pays a commission whether or not they use a broker.
Fees may be charged for extra services, usually paid directly to the broker. Ask what fees will be charged.
Accessing On-line Options
The online world is changing rapidly and the number of consumers using the Internet to research or purchase health insurance is dramatically increaing. The Internet allows consumers to more easiy shop for health insurance, they can learn about their options from the comfort of their homes or offices and on ther own schedules - without pressure to buy. Below is a list of several online comparison websites such as:
This information is not intended as an endorsement or recommendation of any specific site and is by no means all inclusive. The omission of sites does not imply anything about their quality. As with all websites, consumers should carefully read and evaluate site information before making purchases online.
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Part 1: Insurance Basics