Who transacts insurance on behalf of an insurer?

An agent is a person or entity authorized to act on behalf of an insurer, facilitating the sale of insurance products and managing relationships with clients. They represent the insurer and have the authority to bind coverage, collect premiums, and provide guidance to clients about suitable insurance policies. This relationship is often defined by an agency agreement, which outlines the powers and responsibilities of the agent concerning the insurer.

In contrast, brokers act as intermediaries between clients seeking insurance coverage and insurers, without being directly tied to any one insurer. Clients are the individuals or entities seeking the insurance coverage, while underwriters assess risks and determine coverage terms and pricing for policies but do not engage in direct transactions with clients in the same way agents do. Thus, the role of the agent is specifically geared towards transacting insurance on behalf of an insurer, making it the correct choice for this question.