14.2.1 Role of Insurance Producers in Procuring Insurance.

• Jurisdiction: Arizona

14.2.1 Role of Insurance Producers in Procuring Insurance. Insurance producers act as intermediaries between insurers selling insurance contracts and customers seeking to procure insurance coverage.⁸ They are compensated by agreed-upon commissions, usually paid by the insurer.⁹ They also may charge fees to customers for services beyond those routinely provided when procuring coverage.¹⁰ Insurance producer functions may include: soliciting customers and evaluating their insurance needs;¹¹ recommending coverage;¹² completing and submitting applications to insurers;¹³ binding coverage;¹⁴ collecting premiums;¹⁵ delivering and countersigning policies;¹⁶ explaining policy provisions;¹⁷ and, in the case of independent producers, surveying the market to offer choices of coverage and insurers.¹⁸

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Notes:

^[8] See A.R.S. § 20-281; see also 43 Am. Jur. 2d Insurance § 123 (2011); Lee R. Russ, Couch on Insurance (“Couch”) § 45:3 (West, 3rd ed. 1997-2011).

^[9] A.R.S. §§ 20-298, 20-373, 20-485.11(C); Arizona Ins. Guar. Ass’n v. Humphrey, 109 Ariz. 284...