Property and Casualty Insurance Practice Exam

What term describes someone who sells insurance on behalf of an insurance company?

1. Brokers

2. Producers

3. Consultants

4. Solicitors

The correct answer is: Producers

The term that describes someone who sells insurance on behalf of an insurance company is "producers." Producers are individuals who represent an insurance carrier and are responsible for finding clients to sell insurance products. They may work directly for an insurance company or as independent agents. Producers play a crucial role in the insurance industry as they not only sell policies but also help clients understand their insurance needs, provide quotes, and facilitate the application process. They often have licenses specific to the types of insurance products they sell and must adhere to regulations governed by state insurance departments. The other options, while related to the insurance field, refer to different roles. Brokers, for example, typically represent the buyer or client rather than an insurance company, allowing them to seek out policies from various insurers to find the best fit for their clients' needs. Consultants usually provide expert advice or strategies in insurance matters but do not directly sell policies. Solicitors may refer to individuals who solicit business but may not necessarily have the licensing or formal association with the insurance carrier that producers do.