Bots Inc (BTZI)

[lesgetrich]

Not sure how it applies here but each insurance agent is licensed by the states where they do business. They are required to take certain courses and pass a tough licensing exam. They also need to take 30 hours of continuing education courses every 2 years. Insurance companies/carriers are also licensed/admitted by each state which means they pay state taxes and comply with all state regulations and consumer protections. Agents can also sell policies from non-admitted carriers as long as they pay a separate fee on each policy.

If you want to draw parallels, I would look at the carrier as the MME and the agents as an independent contractor (which in many cases they are). Agents can build agencies which employ other agents. Typically, the agency contracts with (is appointed by) each carrier. I have appointments with multiple carriers. If I had employees, only those who were licensed would be able to sell policies or advise customers on insurance issues. They could sell any policy for which the agency had an appointment and be paid by the agency not the carrier. Normally, the agency would collect all commissions from the carrier and distribute them to the employees/agents as per their employment agreement.