In Maryland, what is the agreement called that allows an insurance producer to sell, solicit, or negotiate policies for an insurer?

In Maryland, the agreement that enables an insurance producer to sell, solicit, or negotiate policies on behalf of an insurer is known as an appointment. This formal relationship is crucial because it establishes the legal authority for the insurance producer to act in the insurer's interest, ensuring that they are authorized to conduct business and represent the insurer in various transactions.

Appointments are necessary for regulatory compliance, as they provide oversight and accountability in the insurance market. They also help protect consumers by ensuring that only qualified and authorized producers can sell insurance products. In contrast, the other terms refer to different concepts: a license is the legal permission for an individual to practice as an insurance producer, a binder is a temporary agreement that provides coverage until a formal policy is issued, and designation typically refers to professional certifications or titles within the insurance field. Hence, the term that specifically relates to the agreement with an insurer is appointment.