An insurance intermediary who/that represents the insured rather than the
insurer. Since they are not the legal representatives of insurers, brokers,
unlike independent agents, often do not have the right to act on behalf of
insurers, such as to bind coverage. While some brokers do have agency contracts
with some insurers, they usually remain obligated to represent the interests of
insureds rather than insurers. For example, some state insurance codes impose a
fiduciary responsibility to act on behalf of their customers or provide full
disclosure of all their compensation from all sources.