Who acts on behalf of the insurer to sell, negotiate, or effect insurance contracts?

The role of an agent in the insurance context is to represent the insurer and facilitate the sale of insurance contracts. This includes negotiating terms, providing advice to clients about suitable coverage options, and ensuring that the contracts meet both the client's needs and the insurer's requirements. An agent typically has the authority to bind coverage and acts as a liaison between the insurance company and the policyholder.

Agents are licensed professionals who undergo specific training and must adhere to regulatory requirements. They are compensated through commissions based on the policies they sell. This role is crucial for insurers as it helps in building relationships with customers and ensuring that their products reach the market effectively.

In contrast, other roles such as brokers operate differently; they represent the client and may negotiate terms with multiple insurers without being directly affiliated with one. Adjusters are responsible for evaluating claims and determining the insurer's liability under the policy, while premium auditors are involved in reviewing premium calculations and ensuring compliance with underwriting guidelines. These roles do not involve the direct selling and negotiation of insurance contracts, highlighting the distinct function of an agent in the insurance industry.