An insurance agent makes his or her living off of commissions from companies or individuals selling insurance. Typically, commissions range from two to eight percent of each premium paid by the customer. A reputable broker knows the specific needs of a client, knows the potential client’s circumstances and wants, and then knows how much of each premium they can afford to pay to get them the most desirable insurance coverage. This is not always easy to work, because it takes more than just finding a policy that you like. It takes research and experience to choose which policies are right for the individual or company being insured. Insurance agents also must be able to explain the options presented to the client in a manner that will help him or her make a decision.Although an insurance broker is the face of a particular insurance company, not all brokers are created equal. A qualified broker will know the ins and outs of insurance companies and the business of insurance itself. The broker has knowledge of the companies’ financial standing and track record. An agent will also know the intricacies of each individual policy. In addition, an agent will be well versed in any state laws governing insurance, which may not be in the customer’s best interest.Insurance sales representatives are required to be licensed by the state where the policy was purchased. Any company wanting to sell insurance should have at least one licensed insurance sales representative. This is usually accomplished through completion of a training course. The training course will insurance agency typically be given to the agent by an independent organization. After passing the certification exam, the insurance sales representative must still be licensed by the state he or she works for. If the state requires a separate license, this is given to the agent upon successful completion of the certification program. The broker has the responsibility to maintain a license and keep up to date with licensing requirements.