Massachusetts Life Producer Practice Exam

Before acting as an insurance agent, what must an individual secure from an authorized insurer?

1. Certification

2. Appointment

3. License renewal

4. Background check

The correct answer is: Appointment

An individual must secure an appointment from an authorized insurer before acting as an insurance agent. An appointment is a formal agreement between the insurer and the agent that allows the agent to represent the insurer in selling its insurance products. This appointment is necessary for the agent to legally sell insurance on behalf of the insurer and often involves the insurer confirming that the agent is licensed and meets other qualifications. Obtaining a license is a prerequisite to gaining an appointment; however, the appointment itself is what legally binds the relationship between the agent and the insurer. It ensures that the insurer acknowledges the agent as their representative and is critical in the insurance distribution process. Thus, having an appointment is vital for an insurance agent to operate within the legal framework established by state regulations.