Why Arizona Health Insurance Agents Are Regulated
States have the power to regulate
insurance brokers and agents. This is because the
insurance business is basically one of trust. Arizona
nsurance agents are not dealing with a tangible product
when they sell an insurance policy. A insurance policy
is not like a used car where you can kick the tires and
look under the hood. It is a formal agreement between
the insurance carrier and the client that the carrier
will cover certain health-related services after the
client has paid monthly premiums in exchange for the
coverage The independent agent acts as an intermediary
between the individual client and the much larger
insurance carrier, hopefully to find the best policy at
the best price for the client so his or her insurance
needs are met.
As in many other professions, the
Arizona health insurance agent has to meet certain
requirements set by the state in order to be able to
sell insurance. These requirements can change or vary
over time, but the ultimate goal is to make sure that
the agent meets generally understood standards so the
consumer is protected from the acts of unprofessional or
unscrupulous agents. Unfortunately, since there is
always a human factor involved, invariably there will
be a very small minority of agents who will try to take
advantage of buyers for personal gain. Because he state
regulates the health insurance profession, there are
formal mechanisms in place to address any problems that
may arise.
Because states require the agent to
take a course or courses in order to become licensed,
and pass an assessment at the end of the course, and
because there is an annual requirement for continuing
education to review proper procedures and become aware
changes, expectations for honest, ethical and proper
business practices by the agent are clearly spelled out.
All states now have an insurance
web site where the consumer can go to find out more
about the individual agent or his insurance brokerage
Information about his or her license is always available
on the site. The consumer can learn the agent's license
number, and how long he or she has had the license. If
the agent has had complaints filed against her or him,
these complaints and their resolution are recorded on
the site.
The web address for the Arizona's
health insurance site is ww.id.state.az.us. On the site,
the consumer will be able to verify that an agent's
license is current, ask questions about an individual
agent or an insurance company; file a complaint; report
someone who is filing fraudulent claims; as well as
getting general information about life and health
insurance, among other things.
Because health insurance is
necessary for the well-being and peace of mind of the
consumer, it is important that state regulators set the
perimeters for its sale and implementation. This is
good for the consumer, but also good for the agent,
since he or she can safely sell products knowing that
the government has made it more difficult for
unprofessional agents to confuse and take advantage of
the buyer.
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