What responsibility does an agent have regarding premium payments?

An agent has a critical responsibility to ensure that clients are aware of premium due dates and to facilitate timely payment to maintain insurance coverage. This duty is fundamental to the agent-client relationship, as maintaining coverage is essential for the protection that policyholders seek. Agents should remind clients about upcoming payments and provide information on how to make those payments, thereby helping to prevent lapses in coverage that could leave clients unprotected in times of need.

Although agents do not handle the funds themselves or pay premiums on behalf of clients, their role in educating clients and ensuring they understand their payment obligations is vital. This aspect of the agent's responsibility highlights the importance of communication and proactive engagement in the agency-client dynamic.