When you are an agent, whom do you represent?

An insurance agent primarily represents the insurance company they are contracted with. This relationship means that the agent's main responsibility is to act in the best interest of the insurance provider, facilitating the sale of policies and ensuring that the company's rules and regulations are followed. Agents often help clients understand the insurance options available to them and assist them in choosing the right policy, but their fiduciary duty is to the insurer. This commitment includes not only safeguarding the insurer's principles but also ensuring compliance with state regulations governing insurance practices.

In contrast, while agents do serve clients and may have responsibilities towards the insured, their primary legal and ethical allegiance lies with the insurance company they represent. This differentiation is crucial in understanding the role of an insurance agent in the broader insurance landscape and the implications of their professional conduct.