A person or corporation authorized to solicit insurance, collect premiums, and transact insurance business on behalf of an insurance company is known as what?

• A. Agent
• B. Broker
• C. Adjuster
• D. Underwriter

Answer: (A)

In insurance, the person or organization that is authorized to solicit policies, collect premiums, and transact insurance business on behalf of an insurer is called an agent. This reflects an agency relationship where the insurer authorizes the agent to represent the company, issue policies, and handle premium collection. An agent may have binding authority within the scope granted by the insurer, meaning they can actually commit the insurer to coverage.

This role is distinct from other professionals in the industry. A broker represents the insured and works to place coverage with an insurer, rather than acting as the insurer’s representative. An adjuster handles claims after a loss, evaluating and settling them, not selling policies. An underwriter assesses risk and determines policy terms and pricing, but does not solicit or collect premiums from policyholders.