In an insurance contract, the insured is represented by

In an insurance contract, the insured is represented by

• A. Attorney
• B. Broker
• C. Agent
• D. Attorney-in-fact

Answer: (B)

The person who represents the insured in an insurance contract is a broker. A broker acts on behalf of the insured, shopping the market to find coverage that fits the insured’s needs, comparing options from multiple insurers, explaining what each policy covers and excludes, and helping place the policy with a carrier. The broker’s primary fiduciary duty is to the insured, not to a single insurer, which is why they’re described as representing the insured. In contrast, an agent typically represents the insurer and has authority to bind coverage on behalf of that insurer, meaning their duties and loyalties are aligned more with the insurer’s interests. An attorney handles legal matters, and an attorney-in-fact operates under a power of attorney in specific acts, not as the standard representative for obtaining an insurance contract. So, the best fit for representing the insured in an insurance contract is the broker.

The person who represents the insured in an insurance contract is a broker. A broker acts on behalf of the insured, shopping the market to find coverage that fits the insured’s needs, comparing options from multiple insurers, explaining what each policy covers and excludes, and helping place the policy with a carrier. The broker’s primary fiduciary duty is to the insured, not to a single insurer, which is why they’re described as representing the insured.

In contrast, an agent typically represents the insurer and has authority to bind coverage on behalf of that insurer, meaning their duties and loyalties are aligned more with the insurer’s interests. An attorney handles legal matters, and an attorney-in-fact operates under a power of attorney in specific acts, not as the standard representative for obtaining an insurance contract.

So, the best fit for representing the insured in an insurance contract is the broker.