What is a primary duty of an insurance broker?

A primary duty of an insurance broker is to present the client's risk truthfully to the insurer. This is essential for maintaining the integrity of the insurance process. When brokers accurately convey the risk associated with a client's situation, they help insurers make informed underwriting decisions, which ultimately aids in determining appropriate premium rates and coverage terms.

By ensuring that all relevant details about the client's risk profile are provided, the broker fosters transparency and helps build a trusting relationship between the client and the insurer. This is crucial, as any misrepresentation or omission of information could lead to problems later, such as policy disputes or claims being denied.

While acting in the best interest of the client is an important aspect of a broker's role, it is closely tied to the requirement for truthful representation to ensure that both the client's needs and the insurer's risk assessment are adequately addressed.