General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In an insurance transaction, within the scope of the agency relationship, an agent represents:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
An agent is an authorized representative of the insurer — its principal — and acts on the insurer's behalf in soliciting and servicing business. Under agency law, the insurer is generally bound by acts the agent performs within the scope of express, implied, or apparent authority. This is why an agent's representations about coverage can bind the insurer, and why agents must carefully stay within their authority.
Why the other options are wrong
- A) A broker represents the client; an agent represents the insurer. In life and health lines, business is transacted by agents.
- B) The beneficiary is a third party entitled to benefits, not someone the agent represents.
- C) The Department of Insurance regulates and licenses agents; it is not represented by them.
Memory hook
Agent = the insurer's ambassador. Its acts within authority are the company's acts.