Texas Life Agent Practice Exam

A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n):

1. Broker

2. Agent

3. Adjuster

4. Underwriter

The correct answer is: Agent

The term that describes a person appointed by an insurer to solicit or sell insurance on their behalf is "Agent." An agent represents the insurance company and acts as a liaison between the insurer and potential policyholders. They have the authority to conduct business on behalf of the insurer, which includes explaining products, collecting premiums, and enrolling clients in insurance policies. In contrast, a broker operates independently and typically represents the policyholder rather than the insurance company. Adjusters are responsible for evaluating insurance claims and determining the extent of the insurer’s liability. Underwriters assess risk and decide which applications for insurance should be accepted. Understanding these roles clarifies why "Agent" is the appropriate term for someone who sells insurance on behalf of an insurer.