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Explaining How to Acquire a Policy of Insurance  

The person buying insurance may only acquire insurance from an insurer  by one of three methods:  

By Meeting With An Agent of The Insurer  

The agent is a person appointed by the insurer to transact insurance  business with and on behalf of the insurer. The agent usually has the  right to bind insurance in the name of the insurer without first  obtaining permission from the insurer. The prospective insured presents  his or her needs to the agent who will either accept or reject the  proposed insurance. If accepted, the prospective insured is immediately  an insured of the insurer.  California Insurance Code Section 31 defines insurance agent as  \\u201cInsurance agent\\u201d means a person authorized, by and on behalf of an  insurer, to transact all classes of insurance other than life,  disability, or health insurance, on behalf of an admitted insurance  company.\\u201d 

By Dealing With A Broker  

An insurance broker is a person who transacts insurance with, but not on  behalf of, an insurer. The broker\\u2019s only duty is to the prospective  insured, so he or she shops for the broadest coverage available at the  lowest possible price. The broker cannot bind an insurer without first  obtaining a commitment in writing to insure the potential insured.  California Insurance Code Section 33 defines the term as follows:  \\u201c\\u2019Insurance broker\\u2019 means a person who, for compensation and on behalf  of another person, transacts insurance other than life, disability, or  health with, but not on behalf of, an insurer.\\u201d  

Through A Direct Writer.  Some insurers, known as direct writers, refuse to deal with agents or  brokers. They will accept proposals for insurance directly from a  prospective insured who will speak\\u2014usually by telephone\\u2014with an employee  of the insurer who has the authority to accept a particular risk.

ZALMA OPINION The key to analyzing every claim presented to an insurer requires an  analysis of the acquisition of the insurance policy, the representations  made by the insurer to obtain the policy and the insurance that was  agreed to by the insurer.  \\xa9 2021 \\u2013 Barry Zalma