Appointment
What it is
Section titled “What it is”An appointment is an insurer’s formal authorization for a producer to act as its agent, filed with the state DOI. It is separate from, and additional to, the producer license. STABLE
The distinction is critical and frequently tested:
- License = the state says “you are qualified to transact insurance.”
- Appointment = a carrier says “you specifically may represent us and sell our products.”
You can be licensed but not appointed (you simply can’t write that carrier’s business yet). You generally cannot be appointed without being licensed in the relevant line. STABLE
How it works
Section titled “How it works”- A producer holds the appropriate license (line of authority).
- A carrier agrees to do business with the producer and files an appointment with the state (often via NIPR).
- The producer may now solicit and write that carrier’s products.
- If the relationship ends, the carrier files a termination of the appointment. STABLE
Why appointment is the bridge to the MGA
Section titled “Why appointment is the bridge to the MGA”For an ordinary producer, the appointment just authorizes sales. For an MGA, the carrier relationship goes much further: the carrier delegates underwriting (binding) authority — and sometimes claims authority — to the MGA via a written MGA / program agreement plus an appointment. STABLE
So the appointment is where “I can sell your policies” becomes “I can bind risk and underwrite on your behalf within agreed guidelines.” That delegation is the heart of the Glacis MGA play. See:
No binding can happen until (a) the producer/entity is licensed in the relevant lines and (b) the carrier has appointed the producer and granted authority. STABLE