What distinguishes an insurance agent from a broker?

An insurance agent is primarily distinguished by their role in representing one or more insurers, which aligns perfectly with the definition of the role. Agents work on behalf of insurance companies, selling policies and facilitating transactions between the insurer and the insured. They are authorized to bind coverage on behalf of the insurers they represent and are often seen as the face of the insurance company.

In contrast, a broker serves as an intermediary for the insured, meaning they primarily advocate for the client’s interests when seeking insurance coverage. Brokers are not tied to any specific insurance company, allowing them to shop around for policies from multiple insurers to find the best fit for their clients' needs.

The other options do not accurately capture the defining characteristics of agents and brokers. Agents do need licenses to operate and are not independent in their operations, as they work closely with the insurers. Additionally, while both agents and brokers can play roles in claims handling, it is not correct to assert that only one of them does. Thus, the distinction made in the correct answer is fundamental to understanding the roles within the insurance industry.