In insurance, what does the term "agent" refer to?

The term "agent" in the context of insurance refers to a person who acts on behalf of another party, typically to arrange or service insurance coverages. Agents play a crucial role as intermediaries between the insurance company and the policyholder. They help clients understand their insurance needs, find appropriate coverage options, and facilitate the purchasing process.

Agents can either be independent, representing multiple insurance carriers, or captive, representing a single company. Their primary function is to serve the interests of the clients they work with while maintaining the interests of the insurer they represent. Thus, their expertise and knowledge of the insurance market are vital for customers seeking to navigate insurance options.

In contrast, individuals who own the insured property are policyholders rather than agents. Those who provide legal representation are typically attorneys or legal advisors, not agents involved in the insurance arrangement. Underwriters, on the other hand, are professionals who evaluate risks and determine the terms and pricing for insurance policies but do not engage directly in the agency role of facilitating insurance contracts.