Whom does a broker represent in an insurance transaction?

In an insurance transaction, a broker represents the insured, which means they act on behalf of the individual or entity seeking insurance coverage. This role is critical, as brokers serve as intermediaries between the insured and insurance companies, helping clients find the best policies to meet their specific needs. They provide valuable advice, assess coverage requirements, and negotiate terms and premiums with insurers.

The broker's fiduciary duty is to prioritize the interests of the insured, ensuring they receive adequate protection and suitable coverage according to their requirements. This representation is foundational to the broker-client relationship, distinguishing brokers from agents, who typically represent the insurance companies.

Understanding this dynamic is fundamental for anyone studying North Carolina insurance statutes and regulations, as it emphasizes the importance of client representation in the insurance market.