Which term describes an insurance producer whose authority is limited by contract to soliciting applications?

• A. General agent
• B. Soliciting agent
• C. Insurance agent
• D. Public nuisance

Answer: (B)

Understanding producer authority levels is key here. An insurance producer whose contract limits them to soliciting applications is described as a soliciting agent. This role involves gathering information, presenting coverages, and forwarding the application to the insurer, but with no power to bind coverage, issue policies, or handle underwriting decisions.

A general agent, by contrast, typically has broader responsibilities, such as supervising other agents and sometimes having delegated authority beyond simple solicitation. The term insurance agent is a broader label that can include roles with or without binding authority, but the specific limited function described here is solicitation only. Public nuisance isn’t an insurance-producing term at all.