What relationship exists between the policy owner and the soliciting agent in life insurance?

The relationship between the policy owner and the soliciting agent in life insurance is characterized by an agency relationship. In this arrangement, the agent acts on behalf of the insurance company to solicit life insurance policies and assist clients in understanding their options. The policy owner relies on the agent’s expertise in navigating the various products available, and the agent provides services that facilitate the policy owner's decisions regarding coverage.

This type of relationship is governed by a legal framework where the agent has a fiduciary duty to act in the best interest of the policy owner and must provide accurate and complete information. The agent's role is to represent the insurer in dealings with the client while ensuring that the client's needs and goals are met through suitable policy recommendations.

In a broader context, a principal-agent relationship also could apply, as the agent serves as the intermediary between the policy owner (principal) and the insurance company. However, focusing specifically on the dynamics of the interaction, the agency relationship is most applicable in this scenario. The other options, such as a broker-client relationship or ownership agreement, do not accurately describe this interaction as they imply different roles or responsibilities within the insurance process.