What best describes the relationship between brokers and insurers?

Brokers play a crucial role in the insurance industry by serving as intermediaries between the insured (the client seeking insurance) and the insurers (the companies providing coverage). The defining characteristic of brokers is that they represent the interests of the insured, working to find policies that best meet their clients' needs.

Even though brokers primarily advocate for the insured, they are often compensated by the insurers through commissions. This arrangement allows brokers to provide their services to clients without direct charges, as they are paid by the insurance companies upon the successful placement of a policy. This dual relationship can sometimes create potential conflicts of interest, emphasizing the importance of transparency in how brokers operate and how they are paid.

Other options presented do not accurately reflect the nature of this relationship. Brokers do not represent insurers only, do receive compensation for their work, and do not work exclusively with government insurers. This distinction solidifies the importance of the broker's role in ensuring that clients receive appropriate insurance coverage tailored to their specific needs.