Which organization does the agent primarily represent in a transaction?

In insurance transactions, the agent primarily represents the insurance company when facilitating the purchase of insurance products. This relationship is often established through a contractual agreement where the agent has a fiduciary duty to act in the best interests of the insurer, ensuring that the policies sold align with the company's offerings and underwriting guidelines.

The agent's responsibilities include soliciting insurance applications, providing clients with information about policy options, and helping the insurer assess risk based on the information gathered from potential clients. While agents should also consider the needs and best interests of their clients, their allegiance lies predominantly with the insurer, as they are typically compensated by the insurance company through commissions or fees based on the sales they generate.

This representation dynamic is critical to understanding the agent's role and obligations within the insurance industry, establishing the foundational principle that agents are viewed as representatives of insurance companies in the marketplace.