What is an Insurance Producer AKA Agent?

• A. A licensed insurance producer that is not appointed with an insurance company.
• B. A person who sells only health insurance.
• C. A person who handles claims for the insured.
• D. An individual appointed by an insurance company to solicit, negotiate, effect or countersign insurance contracts on its behalf.

Answer: (D)

An Insurance Producer (Agent) is a licensed individual who represents an insurer and is appointed by that insurer to conduct insurance transactions on its behalf. The essential duties include soliciting, negotiating, binding (effecting) insurance contracts, and countersigning policies for the insurer. Being appointed by the company gives the producer the authority to transact business, issue or endorse policies, and handle service tasks related to those contracts for that insurer.

This differs from someone who merely handles claims, which is not the producer’s role. It also isn’t correct to say it’s limited to selling only health insurance or to operate without an appointment, since the ability to bind coverage and transact policies depends on that appointment by the insurer.