PSI Ohio Insurance Practice Exam

Who is defined as an individual who transacts business on behalf of an insurance company?

1. Underwriter

2. Claims adjuster

3. Insurance producer

4. Broker

The correct answer is: Insurance producer

The correct answer is an insurance producer, as this term specifically refers to an individual who is licensed to sell, solicit, or negotiate insurance on behalf of an insurance company. Insurance producers play a critical role in the insurance marketplace, handling various tasks such as finding potential clients, offering different insurance products, and managing their clients' insurance needs. The role of an insurance producer is crucial because they directly interact with consumers, helping them understand their options, assess their risks, and choose policies that best meet their requirements. This distinguishes them from other positions within the insurance industry. For instance, underwriters focus on evaluating risk and determining the terms and conditions of insurance policies but do not engage directly in selling them. Claims adjusters, on the other hand, are responsible for investigating and resolving claims after an incident occurs, rather than transacting business beforehand. Brokers are also involved in selling insurance, but they typically act on behalf of clients rather than the insurance companies themselves, making their role different from that of an insurance producer.