The authority granted to a licensed producer is provided via the:

The authority granted to a licensed producer is connected to the Law of Agency. This legal principle establishes the relationship between the producer (agent) and the insurance company (principal). In this context, the producer operates on behalf of the insurer in selling insurance products and managing client interactions. The Law of Agency outlines the responsibilities and powers that agents have in their dealings, establishing them as authorized representatives of the insurer.

Understanding this legal framework is crucial for producers since it dictates how they can act in transactions, their duties to clients, and the obligations they have towards the insurance company. For instance, producers must act in the best interest of the insurer while also ensuring that the needs of the clients are met. This dual responsibility is a fundamental aspect of the producer's role enabled by the Law of Agency.