What is the role of an insurance agent?

An insurance agent's primary role is to represent the insurance company under a contract, which allows them to sell policies and provide insurance products to consumers. This relationship means that the agent acts on behalf of the insurer, helping the company reach potential clients while also facilitating the purchase process for those clients.

The agent is knowledgeable about the various policies available and uses that knowledge to advise potential customers, ensuring they find coverage that meets their needs. The binding authority of an agent may be limited by the terms of the contract they have with the insurance company, which dictates what actions they can take.

While agents do interact with insured individuals and may assist with claims-related inquiries, they primarily serve the insurer's interests in selling and managing policies, rather than acting solely on behalf of the insured or providing legal representation in claims situations. This aspect of their role is critical in delineating the boundaries of their responsibilities and the expectations from their clients and the insurance company they represent.