What is the main distinction between an "insurance agent" and an "insurance broker"?

The main distinction between an insurance agent and an insurance broker lies in their relationship and representation. An insurance agent works on behalf of an insurance company, selling policies and representing the interests of that company. In contrast, an insurance broker acts as an intermediary who represents the interests of the insured, providing them with access to various insurance products from multiple insurers.

This distinction is crucial in understanding how each operates within the insurance market. While agents typically have a contractual obligation to the insurers they represent, brokers are independent and can offer a wider range of options tailored to the specific needs of their clients. This allows brokers to provide more personalized service and competitive pricing by comparing policies from different providers.

Therefore, the relationship and representation aspect is what makes the correct choice accurate, underscoring the roles these professionals play in the industry.