According to agency law, who does the producer represent?

In agency law, a producer, often referred to as an insurance agent, has a legal relationship primarily with the insurance company they represent. This relationship establishes the producer as an authorized representative of the insurance company, allowing them to solicit, negotiate, and bind insurance contracts on behalf of the company. The producer acts in the interest of the insurance company, ensuring that they adhere to the company’s policies and guidelines while fulfilling their duties.

Understanding this relationship is crucial because it delineates the responsibilities and obligations of the producer towards the insurance company, rather than towards the insured or any other party. While the producer does engage with clients and provides them with insurance options, their fiduciary duty is to act for the insurance company, which includes a duty to disclose all necessary information about the policies they are selling and to prioritize the best interests of the insurer in their transactions.