Who is an insurance agent?

• A. A person authorized to sell, solicit and negotiate insurance contracts
• B. A person who only handles claims
• C. An employee who underwrites policies
• D. A person who adjusts losses

Answer: (A)

An insurance agent is someone authorized by an insurer to sell, solicit, and negotiate insurance contracts. This role centers on bringing in and arranging coverage for clients, within the authority granted by the insurer. Agents represent the insurer to applicants and help finalize policy terms, but they do not handle claims, underwrite policies, or adjust losses. Those tasks belong to other specialists in the field—the claims process is handled by claim adjusters, underwriting is done by underwriters evaluating risk, and loss adjustments are done by loss adjusters. Because of this focus on selling and negotiating coverage on behalf of the insurer, the description of someone authorized to sell, solicit, and negotiate is the best fit.