What must an insurance broker do when dealing with an insured party?

When an insurance broker is dealing with an insured party, a crucial responsibility is to transmit applications and policies on behalf of the insured. This function is central to the role of the broker, which acts as an intermediary between the insured and the insurer. By transmitting applications, the broker ensures that the necessary documentation is properly submitted to secure coverage. Additionally, delivering policies to the insured keeps them informed about their coverage, terms, and conditions, which is essential for maintaining a good client relationship and ensuring that the insured fully understands their insurance policy.

The role of transmitting applications and policies is vital in facilitating seamless transactions in the insurance market. It helps ensure that customers receive the appropriate coverage and have all necessary information for their records. Thus, this answer reflects the broker’s fiduciary duty to advocate for and assist the insured throughout the insurance process.