South Carolina Life Insurance Practice Exam

Whom does an insurance agent represent?

1. Insurance Clients

2. Insurance Companies

3. Both the Insurer and the Insured

4. Only the Insurer

The correct answer is: Both the Insurer and the Insured

An insurance agent acts as a representative for both the insurer and the insured, which is why this answer is correct. This dual representation means that the agent has a responsibility to the insurance company to promote and sell its products while also serving the needs and interests of clients seeking coverage. The agent's role involves guiding clients in choosing policies that best suit their needs while ensuring they understand the terms and conditions set forth by the insurer. Therefore, the agent must balance the objectives of the insurer—such as underwriting guidelines and company policies—with the needs of the insured, who looks for adequate coverage and fair pricing. This relationship is essential for fostering trust between clients and insurers, as the agent serves as the link that facilitates communication and understanding between the two parties. The role of the insurance agent is pivotal in creating a positive experience for clients while maintaining the business's integrity and interests.