Insurance Producer

Business, Legal & Accounting Glossary

Definition: Insurance Producer


Insurance Producer


Full Definition of Insurance Producer


An insurance producer is someone who is licenced to sell insurance in a specific state or province and is in charge of selling insurance goods on behalf of insurance firms. As a result, they must have a substantial degree of knowledge in their specific insurance subfield. An agent, for example, may specialise in personal auto insurance or commercial farm insurance.

Insurance brokers are frequently not genuine employees of insurance companies (with the exception of captive agents). Instead, they work on commission and sell insurance for a variety of insurers. The commission agreement is determined by the producer’s contract with the insurance company and may vary depending on the type of insurance sold. For example, an insurance company may pay the insurance producer 20% of the premium for the sale of a home insurance policy and 10% for the sale of an auto insurance policy.

Insurance producers are in charge of tasks such as:

  • Creating payment options for insurance premiums
  • Reporting Claims
  • Liaison with claims adjusters
  • Updating Policy Information
  • Maintaining a good working connection between the client and the insurance company

The terms “insurance producer,” “independent agent,” “captive agent,” “insurance representative,” and “insurance broker” are all interchangeable.

A person must finish the necessary training, pass relevant exams, and acquire a licence to become an insurance producer. They will be authorised to offer insurance products on behalf of insurance firms if they have completed all of the above. Insurance producers’ licences must be renewed on a regular basis. To renew the licence each year, continuing education and refresher courses, as well as a modest licence fee, may be necessary.

Insurance producers can be licenced in their home state/province (as a resident agent or statutory agent) or in other states/provinces. To keep an active licence, each state/province has its own set of regulatory standards.

Insurance producers must follow a tight code of conduct in addition to the regulatory education credits required to maintain their licence. This rule of conduct explains the insurance producer’s fiduciary responsibility.

A fiduciary is a person or organisation who acts on another person’s behalf. The insurance producer represents the insurance company by selling their goods, while also representing the consumer by protecting their financial well-being through the sale of insurance. A fiduciary must always prioritise their client’s interests over their own. For example, an insurance producer should not sell insurance just to increase their income – the sale should benefit the client first and foremost.

This code of conduct also states that producers must be trustworthy, honest, and committed to the overall integrity of the insurance sector. They must sell and maintain plans that are advantageous to both the client and the insurance provider. For example, if an insurance producer has information that leads them to believe a customer may make a fraudulent claim, they must refuse to sell the insurance policy to the client. While the insurance producer operates as a mediator between the client and the insurance company, they are accountable for both parties’ financial well-being during the life of the insurance contract.


Synonyms For Insurance Producer


insurance producer
independent agent
captive agent
insurance representative
insurance broker


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Insurance Producer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
June 27, 2022 https://payrollheaven.com/define/insurance-producer/.
Chicago Manual of Style (CMS):
Insurance Producer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/insurance-producer/ (accessed: June 27, 2022).
American Psychological Association (APA):
Insurance Producer. PayrollHeaven.com. Retrieved June 27, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/insurance-producer/

Definition Sources


Definitions for Insurance Producer are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 8th January, 2022 | 6 Views.