Mississippi Property & Casualty Practice Exam

What is the role of an insurance agent in relation to existing businesses?

1. Audit financial records

2. Provide investment advice

3. Service existing businesses

4. Negotiate new policies

The correct answer is: Service existing businesses

The role of an insurance agent in relation to existing businesses primarily involves servicing those businesses. This includes maintaining the relationship with clients, ensuring their current policies continue to meet their needs, assisting in claims processes, and providing guidance on policy adjustments as circumstances change. By servicing existing businesses, agents help ensure that their clients have the appropriate coverage in place and are compliant with any regulatory or risk management requirements that might affect them. While agents may occasionally negotiate new policies, this function is not their primary responsibility concerning existing clients. Auditing financial records and providing investment advice are typically outside the scope of an insurance agent's duties, as these tasks require specialized skills and certifications unrelated to the core functions of insurance representation and policy management. Thus, servicing existing businesses encapsulates the essence of an insurance agent's ongoing obligations to their clients.