What is the primary responsibility of an agent regarding premium payments?

The primary responsibility of an agent regarding premium payments is to remit them to the insurer within a specific time. This obligation ensures that the insurance policy remains active and that coverage is maintained for the insured. The timely remittance of premiums is crucial because it upholds the contractual agreement between the insurer and the insured. If premiums are not paid on time, it could lead to lapses in coverage, resulting in potential financial risks for the policyholder.

Agents serve as intermediaries between the insurer and the insured, and part of their duty is to manage these premium payments efficiently. Their role includes ensuring that payments are processed according to the timelines set by the insurer, thus reinforcing their trustworthiness and professionalism.

In contrast, the other options are less aligned with the typical responsibilities of an insurance agent. Billing the insured directly is generally the responsibility of the insurer rather than the agent. Retaining premiums until the end of the year does not fit the operational framework of handling premiums, as they need to be passed on promptly to provide coverage. Additionally, deducting service fees before payment would not typically be part of an agent's responsibilities unless expressly authorized and agreed upon, which could complicate the payment process and lead to misunderstandings.