What role is defined as the responsibility to handle premiums on behalf of policyholders in a fiduciary capacity?

The role that is defined as having the responsibility to handle premiums on behalf of policyholders in a fiduciary capacity is that of the agent. An agent acts on behalf of an insurance company to sell insurance policies to clients and is entrusted with handling premiums paid by policyholders. This fiduciary responsibility requires the agent to manage the funds ethically, ensuring they are used appropriately in accordance with the policyholders' best interests.

In contrast, a beneficiary receives the benefits from the insurance policy upon a triggering event, such as the death of the insured, but does not handle premiums. An underwriter assesses and evaluates risk to determine policy terms and pricing but does not function in a fiduciary capacity regarding premium payment. A broker, while also an intermediary between the client and the insurance company, typically does not handle premiums in the same fiduciary manner as an agent; instead, they may facilitate negotiations and help clients find the best coverage options without assuming direct fiduciary responsibility for premium funds.