Property and Casualty Insurance Practice Exam

What differentiates a Solicitor from an Agent in the insurance field?

1. Solicitors cannot represent the insurance company

2. Solicitors are not allowed to sell any insurance

3. Solicitors cannot issue or countersign policies

4. Solicitors work independently without an agency

The correct answer is: Solicitors cannot issue or countersign policies

In the insurance field, the primary distinction between a solicitor and an agent revolves around the specific roles and responsibilities each holds in terms of policy issuance. Solicitors typically do not have the authority to issue or countersign insurance policies. This is a significant aspect of their role, as it means they cannot finalize or bind coverage on behalf of an insurance company. Instead, solicitors often serve in a more advisory capacity, helping clients understand their options and sometimes assisting them in the application process, but they cannot carry out the formal steps necessary to secure coverage. On the other hand, agents usually have the authority to represent the insurance company and perform functions such as issuing policies, which is a key part of their responsibility. By not having the ability to issue or countersign policies, solicitors maintain a different professional boundary in the insurance landscape. Understanding this distinction helps clarify the operational roles within the insurance industry and the specific powers attributed to each position.