Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The individual who is authorized to act on behalf of the insurer in the sale of insurance is an agent. An agent is a representative of the insurance company and has the authority to sell insurance products, collect premiums, and provide services to policyholders. Agents are typically licensed by the state and often work directly with clients to assess their insurance needs, provide information about various policies, and help them secure the right coverage.

In contrast, a broker operates independently and represents the interests of the clients rather than the insurer, making them a liaison between consumers and multiple insurance providers. Claims adjusters evaluate insurance claims and ensure they are processed correctly, while underwriters assess the risk of insuring applicants and determine the terms of coverage. Each of these roles is crucial within the insurance industry, but the agent is specifically defined as the individual authorized to represent the insurer in sales transactions.