Michigan Property & Casualty Practice Exam 2025 – Complete Test Prep

Insurance agents or producers primarily represent the insurance companies with whom they have contractual agreements. This means that when agents facilitate transactions—such as selling policies, underwriting, or providing policy information—they are acting on behalf of these companies. Their primary responsibility is to market the products and services of the insurance companies they represent, ensuring that the policies sold align with the company's guidelines and offerings.

While agents do interact with and serve clients (the insured) by providing guidance and support, their legal obligation and primary role is to the insurance company. This framework ensures that the companies maintain control over their products and the standards under which their policies are sold. Therefore, any information or service provided by agents must adhere to the mandates and structures defined by the insurance companies they represent.