General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insurance agent's appointment by an insurer means that:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
An appointment is the formal act by which an insurer authorizes an agent to act on its behalf, and the appointment must be filed or noticed with the Insurance Commissioner. The agent must hold a license and be appointed by the insurer before transacting business for that insurer. An unappointed agent cannot act for the insurer, and the appointment does not substitute for the license itself; the license qualifies the person, while the appointment authorizes representation of a specific insurer. Both are required for lawful activity.
Why the other options are wrong
- A) Appointments are required for agents to act for an insurer. They are initiated by the insurer, not arranged by the applicant. Appointments are mandatory and are made by the insurer, not arranged by the applicant at point of sale.
- B) The agent must be appointed before acting for the insurer. Transacting business before the appointment is not permitted. The agent must be appointed before transacting for the insurer, so acting earlier is unlawful.
- D) Appointment and license are separate. The license qualifies the person, and the appointment authorizes representation of a specific insurer. The license qualifies the individual, and the appointment authorizes representation of a specific insurer; both are needed.
Memory hook
License says you can sell; appointment says you sell for this company. Both are needed, in order.