What role does a wholesale broker play in regards to quotes?

The role of a wholesale broker in regard to quotes is to operate as a liaison between retail agents and insurance markets. A wholesale broker is tasked with providing precise and formal quotes to retail agents to ensure clarity and legal standing in the insurance transaction.

Providing quotes in writing, along with any relevant endorsements, is crucial because it protects all parties involved by documenting the terms of coverage, premiums, and any specific conditions associated with the policy. This written documentation serves multiple purposes: it provides a clear record of what has been agreed upon, ensures that the retail agent can accurately convey the terms to their clients, and allows for any endorsements or modifications to be properly understood and enforced.

In contrast, other options do not align with the standard expectations of a wholesale broker. They are not limited to informal or casual quotes, nor do they solely provide verbal quotes, as these approaches can lead to misunderstandings and lack of accountability. The expectation for written quotes reflects the professionalism and regulatory standards in the insurance industry, emphasizing the importance of formal documentation in transactions.