What Is Appointment? Definition | Epic Life Glossary

Why it matters

Licensing and appointment are separate steps. A license comes from the state. An appointment comes from the insurance company. In most states, an agent needs both before selling a carrier's policy. Carriers may charge fees in some states, and they can end an appointment. Agents who want many carrier choices need many appointments, which contracting teams usually help organize.

Source: naic.org

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Related terms

Carrier Appointment: A carrier appointment is the approval an insurance company gives an agent to sell its policies in specific states. The carrier registers the agent with each state's insurance department.
Contracting: Contracting is the process of signing an agent up with an insurance carrier so the agent can sell and be paid on its products. It includes forms, a background review, and a commission agreement.
Producer License: A producer license is a state-issued credential that lets a person sell, solicit, or negotiate insurance. States issue it by line of authority, such as life, and the holder must follow that state's insurance laws.
National Producer Number (NPN): An NPN, or National Producer Number, is a unique identifier assigned to an insurance agent or agency. It follows the producer in every state and stays the same for the whole career.
Direct Carrier Contract: A direct carrier contract is an agreement between an agent and an insurance company without a marketing organization in between. The carrier sets the commission schedule.

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Where we use this term

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