Who or what does the agent represent in dealings with third parties?

In the context of insurance, an agent acts on behalf of a principal, which is typically the insurance company or insurer they represent. The agent's role involves facilitating the sale and management of insurance policies, as well as providing information and assistance to clients or potential policyholders.

By representing the principal, the agent is authorized to conduct business within the scope of their agency agreement, including negotiating terms and conditions of policies, collecting premiums, and handling various transactions that pertain to the insurance coverage offered by the insurer. This relationship is foundational to the practice of insurance, establishing the agent as an intermediary who acts in the best interests of the principal while also addressing the needs of the client.

Understanding that the agent's primary allegiance is to the insurer rather than to the clients or policyholders helps clarify the dynamic of the insurance marketplace and the responsibilities agents hold in that structure.