Which term refers to the person who acts on behalf of another in a contractual arrangement?

The correct term for the person who acts on behalf of another in a contractual arrangement is referred to as a "producer." In insurance and related fields, a producer is typically an individual or entity that sells insurance products or acts as an intermediary between clients and insurance companies. Producers are responsible for facilitating the contract between the insurer and the insured, meaning they represent the interests of the client while navigating the contractual aspects of the insurance deal.

In contrast, a principal is the party who ultimately accepts the risk and benefits from the coverage, a beneficiary is someone who receives benefits from the contract, such as a payee in a life insurance policy, and an underwriter is an individual or institution that evaluates and assumes the risk of insuring clients. Each of these roles plays a crucial part in the insurance process, but the specific function of acting on behalf of another directly within the marketing or distribution of insurance products is specifically aligned with the role of a producer.