Who is defined as an individual who negotiates insurance coverage on behalf of an insurer?

The correct answer is an agent, who is specifically defined as an individual that negotiates insurance coverage on behalf of an insurer. In the context of insurance, agents represent the insurance company and are authorized to sell its policies. They act as intermediaries between the insurer and the insured, facilitating the process of obtaining coverage.

Agents have a fiduciary duty to the insurer and are responsible for ensuring that the policies they sell align with the insurer's guidelines and regulations. This role includes providing information about products, collecting premiums, and assisting in the claims process. An agent's primary goal is to promote the insurer's products and ensure clients are adequately covered according to their needs.

In contrast, a broker typically acts on behalf of the client or insured rather than the insurer, seeking the best coverage options from various insurance companies to meet the client's needs. An underwriter evaluates risks and determines the terms under which the insurance can be offered, while an insured is the policyholder who purchases insurance coverage. These distinctions highlight the unique role of an agent in the insurance industry.