What document outlines the authority given to a producer on behalf of an insurer?

The producer contract outlines the authority given to a producer on behalf of an insurer by detailing the specific rights, responsibilities, and obligations of the producer in relation to the insurer. This document is crucial as it defines the scope of the producer's authority to sell insurance products, handle claims, and represent the insurer in various capacities. By establishing these terms, the producer contract ensures that both the insurer and the producer understand the limits and extent of the producer's role within the company's operations.

In contrast, other documents such as the insurance policy primarily serve to outline the terms of coverage provided to the insured, while a power of attorney, although it can grant authority, is not typically used specifically for the relationship between an insurer and a producer. An agency agreement, while similar, is often a broader term that may not encompass all the specific contractual elements found in a producer contract. Therefore, the producer contract is the most accurate choice for defining the authority of a producer acting on behalf of an insurer.