Which of the following best describes an intermediary?

An intermediary is best described as a person or entity that represents an insurance company. This role is crucial in the insurance industry, as intermediaries—often known as agents or brokers—act as the connectors between the insurance company and the consumer. They help clients understand their insurance needs, navigate policies, and facilitate the purchase of coverage. By performing these functions, intermediaries play a vital role in ensuring that policyholders receive appropriate coverage and that insurance companies effectively reach potential clients.

The other options, while relevant to the context of insurance, do not capture the definition of an intermediary accurately. For instance, the applicant for insurance coverage is the individual or business seeking protection, not acting on behalf of the insurance company. A regulatory body oversees the compliance of insurance transactions and maintains the integrity of the industry but does not participate in selling insurance. Lastly, a type of insurance policy essential for property coverage refers to a specific product within the insurance sector rather than to the entity that represents the insurance provider. Therefore, characterizing an intermediary accurately as the representative of an insurance company is essential for understanding their function in the insurance ecosystem.