A corporation wants to become a licensed business entity producer in Massachusetts. What must the entity do regarding individual licensure within the company?

Why C is correct

M.G.L. c. 175, § 162L requires a business entity producer to designate a designated responsible licensed producer — the individually licensed person through whom the entity's insurance activities are anchored and made answerable to the Massachusetts Division of Insurance. The entity's license and the individual's license are separate requirements that operate side by side; the designation is how the entity connects the two without licensing every clerical employee.

Why the other options are wrong

• A) Massachusetts does not require every employee, including clerical staff, to hold a producer license; the requirement attaches to those who sell, solicit, or negotiate insurance.
• B) The entity license does not blanket-cover every officer's insurance activities; M.G.L. c. 175, § 162L requires a designated individual producer rather than presumed coverage.
• D) Nonresident producer status is for licensees based in other states, not a device for registering a Massachusetts entity's executives.

Memory hook

Every business entity producer names a designated responsible licensed producer — the licensed person behind the firm.