What is the function of a broker-client agreement?

The function of a broker-client agreement primarily centers on outlining the terms of service and responsibilities between the broker and the client. This document serves as a foundational contract that defines the nature of the professional relationship, including the obligations of both parties, the scope of services provided, and any specific conditions that may apply to the brokerage.

Such agreements help ensure that the client understands what to expect from the broker in terms of service and support and also clarify the broker's roles, including the process for handling claims, advising on policies, and maintaining client confidentiality. Establishing these terms is essential for building trust and setting clear expectations, which can ultimately lead to effective communication and a more satisfying experience for both the broker and the client.

While other answers may involve important aspects of the insurance relationship, they do not capture the central purpose of the broker-client agreement as effectively. Legal representation in disputes, premium dictation, and commission structures pertain to different aspects of the insurance process and are not the primary focus of this agreement.