Method of some insurance companies that rely on commissioned agents (brokers) who sell various types of insurance for several companies.
Insurance Encyclopedia
Brokerage fee
The fee earned by a broker for selling a company’s insurance.
Brokerage general agency
See: brokerage shop .
Brokerage general agent
An independent agent who sells the insurance company’s products to brokers, so the brokers can then sell them to the public. This person is charged with appointing brokers on behalf of the company.
Brokerage manager
Salaried insurance company employee or independent agent who is responsible for appointing brokers for the insurance company and encouraging brokers to sell the products of a specific insurance company.
Brokerage market
Reinsurers who write business through reinsurance intermediaries. Reinsurers who do not generally accept such business are referred to as the direct market.
Brokerage shop
Insurance agency operated by an independent general agent who is under contract with several insurance companies. Also known as a brokerage general agency .
Brokerage supervisor
An insurance company employee authorized to designate insurance company brokers.
Brokers
Intermediaries who place Reinsurance business with Reinsurers on behalf of Ceding companies.