How to choose an insurance agent

Under Arizona law, a producer license names the licensee, their address and identification number, the date it was issued, its lines of authority and its expiration date. The lines of authority are the part to read closely: they decide which kinds of insurance the agent may sell. An active license with the wrong lines is not a license for what you need.

Arizona law defines each one. These are the ones most people run into:

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  Property

  Coverage for loss of or damage to property of every kind, such as a building, its contents or a car.
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  Casualty

  Coverage against legal liability, including liability when someone is hurt or their property is damaged.
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  Life

  Coverage on human lives: life insurance.

• Accident and health or sickness

  Coverage for sickness, bodily injury or accidental death. An agent needs this line to sell health insurance.
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  Personal lines

  Property and casualty coverage sold to individuals and families for mainly noncommercial use, such as a car or home policy.

A business that needs general liability needs an agent with the Casualty line, and coverage for its building or equipment needs the Property line. A car or home policy combines property coverage and liability coverage, which an agent can sell under the Property and Casualty lines, or under the Personal lines line, which covers that insurance for individuals and families. Life insurance needs the Life line, and health insurance needs the Accident and Health or Sickness line. If the lookup does not show the line, ask the agent who would place that coverage instead.

• “Which insurers can you offer me?”

  An agent may place coverage with one insurer or with several. Ask which, so you know what you are comparing.

• “How are you paid?”

  Most agents are paid a commission by the insurer; some also charge a fee. Ask, and ask whether any fee applies to you.

• “What happens if I have a claim?”

  Ask who you call and what the agent does when a claim or a billing question comes up.

• “How do I reach you?”

  Ask for a phone number and how questions get answered.

• Your declarations pages

  The page at the front of each current policy that lists who is insured, the coverages, the limits and the deductibles. It lets an agent compare like with like.

• What you want covered

  The business, the car or home, or your life, and any contract, lease or lender that asks for proof of coverage.

• Your questions, in writing

  A short list, so you can check the answers later against the policy wording.

Leave out policy numbers, dates of birth and health details until you have decided to apply.

What a policy pays is decided by its wording, not by what anyone said about it. When an agent proposes a policy, ask for the coverages, the limits and the deductibles in writing, and compare them with the policy you have now. Two quotes are only comparable when they cover the same things at the same limits.

Please do. My license and what it covers are on my about page, with the link to look it up yourself.