Who are the two parties involved in an "Agency Relationship"?

An "Agency Relationship" is characterized by the interaction between a principal and a producer. In this context, the principal is typically the entity seeking the service or product (such as an insurer), while the producer represents that entity in making sales and managing relationships with clients or customers.

This relationship is fundamental in insurance and surplus lines as it establishes the binding agreement where the producer has the authority to act on behalf of the principal, facilitating transactions and communications with clients. The agent acts as a representative for the principal, helping to expand the principal's reach to potential insureds and managing the ongoing relationship.

The other options illustrate different relationships and roles within the insurance context, but they do not accurately define the specific framework of an "Agency Relationship," which is limited to the dynamic of principal and producer.