Which of the following is a person who negotiates an insurance contract on behalf of an insurer?

• A. Producer
• B. Broker
• C. Underwriter
• D. Adjuster

Answer: (A)

The main idea is to know who represents the insurer in arranging and finalizing a policy. The person who negotiates and binds coverage for the insurer is the producer. A producer acts as the insurer’s selling and service representative, presenting policy options, explaining terms, and obtaining the insurer’s agreement to issue the policy within granted authority. A broker, by contrast, represents the insured, shopping for coverage from one or more insurers and negotiating on the client’s behalf. An underwriter evaluates risk and determines eligibility and pricing, but doesn’t typically negotiate or bind a policy for the insurer. An adjuster handles claims after a policy is in force.