Insurance Agent

An Insurance Agent is an institution or individual entrusted by an insurance company to handle insurance business within the authorized scope on its behalf. In foreign trade, it is commonly seen in cargo transportation insurance (e.g., under CIF or CIP terms where the seller must insure) or credit insurance scenarios. Its core function is to sell policies and assist with claims on behalf of the insurer, but legally it does not bear insurance liability; ultimate liability rests with the insurer. Unlike an Insurance Broker, who represents the insured's interests, an agent represents the insurer's interests. In practice, note: the agent must have a formal authorization letter from the insurer, and the consequences of its acts are borne by the insurer; when a foreign trade enterprise insures through an agent, it should verify the agent's qualifications and authorization scope to avoid invalid policies due to unauthorized agency. In addition, in letter of credit settlement, if an insurance policy is required, ensure that the policy issued by the agent complies with UCP600 and the L/C terms. Compared with an Insurance Broker, an agent usually does not provide price comparison services among multiple companies, but can directly obtain support from the insurer.