How does an insurance broker differ from an agent?

The distinction between an insurance broker and an agent primarily lies in who they represent. A broker serves as an intermediary that represents the interests of the client rather than a specific insurance company. This means that brokers have a fiduciary responsibility to their clients and work to find the best insurance solutions that suit the clients' needs across multiple insurers. They have access to a wider range of products and can provide more tailored advice.

In contrast, agents typically represent a specific insurance company. Their primary obligation is to the insurer they work for, which can limit the range of options available to consumers. This fundamental difference clearly outlines why the correct answer highlights that a broker represents the client while an agent represents a specific insurer. By understanding this core function, individuals can better navigate the insurance landscape when seeking coverage.