What is an agent in the context of insurance?

In the context of insurance, an agent is defined as one who receives the authority to act on behalf of someone else. This role often involves facilitating communication and transactions between clients seeking insurance coverage and the insurance company. Agents are responsible for representing the insurer and ensuring that clients understand their options and coverage.

This definition emphasizes the relationship of trust and responsibility that is often established between the principal (the insurance company) and the agent. Agents can provide essential services, such as assessing client needs, recommending suitable insurance products, and managing ongoing client relationships.

In contrast, the other choices do not encapsulate the full role of an insurance agent. While it's true that agents may work independently, they fundamentally act with authority granted by the insurer, which is not expressed in the option discussing independence. Merely selling insurance policies is too narrow and does not reflect the broader responsibilities and functions of an agent, which include various aspects of service and representation. Lastly, saying an agent is just an employee of the insurance company with limited authority does not account for independent agents who represent multiple companies and have a broader scope of operations. Thus, the correct answer highlights the agent's central role in representing and executing the interests of the insurance company while serving the needs of clients.