Which term refers to an insurance agent not appointed by an insurer who represents the client?

Which term refers to an insurance agent not appointed by an insurer who represents the client?

• A. Agent
• B. Insurer
• C. Broker
• D. Policyowner

Answer: (C)

A broker represents the client, not a single insurer. They’re not appointed by any one insurance company, so they work on the consumer’s behalf to compare policies from multiple carriers, explain options, and place coverage that best fits the client’s needs. This fiduciary focus on the customer distinguishes brokers from others who are tied to a specific insurer. In contrast, an agent is typically appointed by an insurer and represents that company; the insurer is the company issuing the policy, and the policyowner is the person who owns the policy.

A broker represents the client, not a single insurer. They’re not appointed by any one insurance company, so they work on the consumer’s behalf to compare policies from multiple carriers, explain options, and place coverage that best fits the client’s needs. This fiduciary focus on the customer distinguishes brokers from others who are tied to a specific insurer. In contrast, an agent is typically appointed by an insurer and represents that company; the insurer is the company issuing the policy, and the policyowner is the person who owns the policy.