Who do insurance agents primarily represent?

Insurance agents primarily represent the insurer, which is the company that provides the insurance coverage. This relationship is fundamental in the insurance industry, as agents act as intermediaries between the insurer and the policyholders. Their role involves not only selling insurance policies but also facilitating communication, processing claims, and ensuring that the terms of the policy are understood by the customers.

Agents are obligated to promote and represent the interests of the insurer they work for. They must adhere to the guidelines set forth by the insurer, which includes providing accurate information about policies and maintaining compliance with state laws and regulations that govern the sale of insurance. This responsibility highlights their role as representatives of the company rather than of individual policyholders or regulatory bodies.

In contrast, the policyowner is the person who purchases the insurance policy and holds the contract, the state regulators enforce laws regarding insurance practices, and the insurance market refers to the overall environment in which insurance products are sold and services are provided. While these entities play significant roles in the insurance ecosystem, the primary representation of an insurance agent is clearly aligned with the insurer.