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Many institutional insurance purchasers buy insurance coverage by an insurance coverage broker. While on the floor it seems the broker represents the buyer (not the insurance coverage firm), and sometimes counsels the client on appropriate coverage and policy limitations, in the vast majority of cases a dealer’s compensation comes in the type of a fee as a share of the insurance premium, creating a conflict of interest in that the dealer’s monetary interest is tilted in the direction of encouraging an insured to buy extra insurance than is perhaps necessary … Read More
