How is the term "broker" defined in Colorado insurance?

The term "broker" in Colorado insurance law is accurately defined as a licensed individual who sells insurance policies on behalf of multiple insurance companies. This definition underscores the broker's role as an intermediary who can represent various carriers, allowing them to provide clients with a range of options to meet their insurance needs. Brokers are typically knowledgeable about different policy types, coverages, and pricing across multiple insurers, which enables them to offer tailored solutions to their clients.

This definition is essential as it differentiates brokers from other roles in the insurance industry, such as agents, who often represent a single insurer. Unlike agents, brokers are not tied exclusively to one company and therefore can advocate for the best interests of the client across multiple providers. Their licensing ensures they meet regulatory standards, which adds a layer of consumer protection.

In contrast, other choices describe roles that do not align with the established definition of a broker. For instance, an unlicensed person giving insurance advice does not fulfill the legal and regulatory standards needed to be called a broker. Additionally, a representative of a single insurance company typically defines an agent rather than a broker, and a state employee overseeing transactions would be considered a regulator or administrative personnel rather than an insurance broker.