In an insurance transaction, who does a licensed agent represent?

In an insurance transaction, a licensed agent primarily represents the insurer. This means that agents have a fiduciary responsibility to act in the best interest of the insurance company they represent. They are tasked with marketing the insurer's products, collecting premiums, and assisting in the underwriting process. Their loyalty is to the insurer, and they are expected to follow the guidelines and policies set by the company.

While agents may interact with policyholders and provide them with information and assistance, their primary role is to serve the interests of the insurance company. They do not represent the policyholder in the same capacity; rather, they facilitate the purchase of insurance products on behalf of the insurer. Understanding this distinction is crucial for recognizing the different roles within the insurance industry.

In contrast, brokers operate differently; they represent the buyer, helping them find policies that best meet their needs. However, in this situation, the focus is specifically on the agent's relationship, making it clear that the agent represents the insurer.