California Insurance Code & EthicsQuestion 37 of 158
Which statement best captures the legal distinction between an 'insurance agent' and an 'insurance broker' under California law?
a.The terms are interchangeable in personal lines
b.Both represent the insurer equally
c.An agent represents the insured; a broker represents the insurer
d.An agent represents the insurer; a broker represents the insured
Explanation
Insurance Code §31 defines an insurance agent as a person authorized to transact insurance on behalf of an insurer (representing the insurer). Section 33 defines a broker as a person who, for compensation, transacts insurance on behalf of another (representing the insured). The fiduciary relationship therefore differs in important ways.
Law Reference: Cal. Ins. Code §31, §33Practice all 158 questions free — no signup required.
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