A licensed producer MUST be _____ by an insurer to be eligible for soliciting insurance contracts

• A. Licensed
• B. Appointed
• C. Insured
• D. Authorized

Answer: (B)

Being appointed by an insurer gives a licensed producer the authority to solicit insurance contracts on that insurer’s behalf. This appointment is a formal agency relationship in which the insurer authorizes the producer to represent its products, solicit applications, and bind coverage within the scope of the appointment. Licensing alone allows you to sell, but you must be appointed by each insurer you represent in order to solicit contracts for them. The other options don’t fit this specific role—being insured describes the customer, and “authorized” isn’t the standard term used to describe the required relationship between a producer and an insurer.