What Is Carrier Appointment? Definition

Why it matters

It is the same idea as an appointment, stated for a single carrier. An agent with ten carrier appointments can offer ten companies' products where licensed. Appointments are tied to the agent's license, so a lapsed license can void them. Carriers may remove an appointment for poor conduct or low activity, depending on the contract and state rules.

Source: naic.org

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Related terms

Appointment: An appointment is a carrier's formal record that an agent may sell its products in a state. The carrier files it with the state, and it requires a valid license first.
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.
Contract Level: A contract level is the percentage tier of a carrier's commission schedule that an agent is paid. A higher level means a larger share of the premium as commission.
License Lapse: A license lapse happens when a producer license expires because the agent did not renew it on time. A lapsed agent cannot legally sell or be paid on new sales in that state.

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Why it matters

Where we use this term

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