Property and Casualty Insurance Practice Exam

Which individual acts on behalf of the insured for a commission?

1. Producer

2. Barker

3. Broker

4. Agent

The correct answer is: Broker

The correct choice is the broker. A broker works on behalf of the insured, or the client, in the insurance market. Their primary role is to find and negotiate the best insurance policies and quotes for their clients from various insurance companies. They operate independently and are compensated through commissions from the insurers for the business they bring in, rather than representing a particular insurer like agents do. This differentiation is fundamental in insurance practices; brokers prioritize the needs and interests of the insured, enabling them to provide tailored advice and access to a wider range of policies than an agent, who typically represents one or multiple insurers and may not have access to the full insurance marketplace. Hence, the broker's role is vital for consumers seeking the most suitable insurance terms and coverage.