What is an Insurance Broker?

• A. A licensed insurance producer that is not appointed with an insurance company.
• B. An adjuster who handles claims for the insurer.
• C. An underwriter who determines policy terms.
• D. A person who writes life insurance for a single company.

Answer: (D)

An insurance broker represents the insured and can place coverage with multiple insurance companies to find the best terms and price for the client. They’re licensed professionals who work on behalf of the person seeking coverage, not for a single carrier. This contrasts with someone who handles claims for an insurer (an adjuster), someone who determines policy terms (an underwriter), or a person who writes life insurance for just one company (a captive or exclusive agent). So, when you hear “insurance broker,” think shopping across many carriers to fit the client’s needs rather than writing for a single company.