CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
Rohit wants to build a career as an insurance intermediary who sells policies of several insurers, advises clients on suitable cover and earns brokerage, acting for the client rather than for any single insurer. Which category fits him?
Rohit would be an insurance broker. A broker acts on behalf of the client, places business with several insurers, advises on suitable cover and earns brokerage. An agent is tied to insurers and acts for them, while surveyors assess losses and aggregators merely display product comparisons.
- AIndividual agent tied to one life insurer
- BInsurance brokerCorrect
- CSurveyor and loss assessor
- DWeb aggregator limited to displaying product information
Explanation
A broker represents the client, deals with multiple insurers and earns brokerage. An individual agent is tied to the insurer(s) it is appointed by and acts for them, a surveyor assesses losses, and a web aggregator only displays comparisons rather than advising and placing business as a client's representative.
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