To solicit insurance contracts, a licensed producer must be _____ by an insurer.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

To solicit insurance contracts, a licensed producer must be _____ by an insurer.

Explanation:
To solicit insurance contracts, a licensed producer must be appointed by an insurer. A state license lets a person solicit insurance in general, but appointment is the insurer’s authorization for that producer to represent them and sell that insurer’s products. This appointment creates the practical relationship—authorizing the producer to bind the insurer’s business, pay commissions, and issue policies on the insurer’s behalf—and it can be terminated by either party. Bonded or approved aren’t the standard mechanisms for authorizing solicitation, and being licensed alone does not authorize solicitation for a specific insurer.

To solicit insurance contracts, a licensed producer must be appointed by an insurer. A state license lets a person solicit insurance in general, but appointment is the insurer’s authorization for that producer to represent them and sell that insurer’s products. This appointment creates the practical relationship—authorizing the producer to bind the insurer’s business, pay commissions, and issue policies on the insurer’s behalf—and it can be terminated by either party. Bonded or approved aren’t the standard mechanisms for authorizing solicitation, and being licensed alone does not authorize solicitation for a specific insurer.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy