An insurance broker transacts insurance with—but not on behalf of—an insurer, while an agent transacts insurance with and on behalf of both the insurer and the insured.
In Estate of Morse ex rel. Morse v. Titan Insurance Co., a Michigan appellate court was asked to determine the capacity of Adrian Insurance Agency when it obtained automobile insurance for Charlotte Morse with Titan Insurance Co. The trial court ruled that Adrian was an agent of Titan and reformed a policy to place it in effect at the time Morse was injured rather than the date stated on the policy.
On Nov. 19, 2004, Morse went to Adrian to insure a 1996 Ford Taurus. She obtained insurance under a Titan policy and paid the premium for six months of full coverage on Nov. 19, 2004. The Adrian agent, however, prepared the application for insurance with an effective date of Nov. 25, 2004. Titan, in turn, issued a policy effective on the date Adrian requested.
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