Definition of Insurance Broker: Under the California Insurance Code Section 33, an insurance broker is defined as a person who, for compensation, transacts insurance on behalf of another person but not on behalf of an insurer.
Role of Insurance Broker: Brokers represent the insured rather than the insurer. They provide advice and help their clients obtain insurance policies from various insurers.
Compensation: Brokers are compensated by their clients, typically through commissions or fees, for their services in securing insurance coverage.
Regulatory Context: This role and definition help ensure that brokers act in the best interest of their clients rather than the insurers.