An insurance agent is defined as an individual who transacts business on behalf of a _______.

An insurance agent is defined as an individual who transacts business on behalf of a _______.

• A. Client
• B. Customer
• C. Insurer
• D. Underwriter

Answer: (A)

An insurance agent is a representative who conducts insurance transactions for the insurer, the principal. The agent’s authority to sell, bind coverage, and service policies comes from the insurer, not from the client or customer. The client or customer is the party seeking coverage, while the insurer is the entity the agent represents. An underwriter is part of the insurer’s risk assessment process, not the principal in the agency relationship. So the correct fill is insurer.

An insurance agent is a representative who conducts insurance transactions for the insurer, the principal. The agent’s authority to sell, bind coverage, and service policies comes from the insurer, not from the client or customer. The client or customer is the party seeking coverage, while the insurer is the entity the agent represents. An underwriter is part of the insurer’s risk assessment process, not the principal in the agency relationship. So the correct fill is insurer.