What is the authority given to a producer to sell, solicit, or negotiate policies on behalf of the insurer called?

The authority given to a producer to sell, solicit, or negotiate policies on behalf of an insurer is referred to as an appointment. An appointment is a formal acknowledgment from the insurer that authorizes the producer to act on its behalf. It typically ensures that the producer meets certain qualifications and adheres to regulatory requirements while representing the insurer’s products.

When a producer is appointed by an insurer, it establishes a legal relationship allowing them to conduct business and serve clients in regards to the insurer's policies. This process is essential for compliance with state regulations governing the operation of insurance transactions.

Other terms, such as license, contract, and certification, although related to the insurance field, serve different purposes. A license permits individuals to operate as insurance producers generally, a contract outlines the specific agreements between parties, and certification often refers to evidence of completion of training or qualifications. However, appointment specifically designates the authorizing relationship between the producer and the insurer for policy transactions.