In which situation is an independent intermediary considered to be the agent of the insured?

An independent intermediary is considered to be the agent of the insured when they provide advice on cover. In this role, the intermediary is acting in the interests of the insured, helping them understand their insurance needs and suggesting appropriate coverage options. This advisory function is a key aspect of the intermediary’s role in ensuring that the insured receives adequate protection tailored to their specific circumstances.

When an intermediary gives advice, they are effectively representing the insured's interests, which establishes an agency relationship. This is distinct from other functions, such as handling the insurer's proposal forms or collecting premiums, where the intermediary is typically fulfilling duties that relate more to the insurer's interests rather than directly advocating for the insured. Surveying property for the insurer also aligns more closely with the insurer's requirements for risk assessment rather than the needs or interests of the insured.