Life & Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The term for a person who acts on behalf of another entity regarding contractual agreements is an agent. In the context of insurance, an agent is someone who has the authority to represent another party, typically an insurance company, and can enter into contracts or agreements on their behalf. This role is fundamental in facilitating the relationship between the insurer and the insured, representing the interests of the insurance company while also providing clients with insurance options and advice.

In many contexts, such as real estate or finance, the term agent carries similar meanings, indicating someone who has the power to act in the best interests of another party. The agent operates under a fiduciary duty to act in the best interest of those they represent, ensuring that contractual obligations are adhered to and that the transactions are executed properly.

Other terms like broker, principal, and trustee refer to different roles within contractual or fiduciary relationships. A broker typically acts as an intermediary between clients and insurers rather than representing a single entity. The principal is the party that grants authority to the agent, and a trustee manages assets or property for the benefit of beneficiaries. Understanding these distinctions helps clarify the specific responsibilities and legal implications associated with each role in contractual agreements.