In the course of transacting insurance business, a licensed insurance broker will legally act in the role of a broker and in the role of an agent. Select the statement which correc... In the course of transacting insurance business, a licensed insurance broker will legally act in the role of a broker and in the role of an agent. Select the statement which correctly describes the duties of the broker in the role of an agent.
Understand the Problem
The question is asking which statement best describes the duties of an insurance broker acting as an agent. It requires knowledge of the roles and responsibilities inherent in insurance brokerage. The user must choose the correct option that accurately reflects the broker's duties in this context.
Answer
(a) As an agent the broker represents the interest of the insurer.
The final answer is (a) As an agent the broker represents the interest of the insurer.
Answer for screen readers
The final answer is (a) As an agent the broker represents the interest of the insurer.
More Information
In the role of an agent, a broker's obligations are aligned with the insurer's interests. This is distinct from their role as a broker, where the primary duty is towards the client.
Tips
A common mistake is confusing the duties of an agent and a broker. Remember that as an agent, the broker represents the insurer; as a broker, they represent the client.
Sources
- Insurance Agent vs. Broker: The Differences and How to Find the ... - insureon.com
- Law Defining 'Agents' and 'Brokers' - insurance.ca.gov
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