14.2.1 Role of Insurance Producers in Procuring Insurance.

JurisdictionArizona

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...

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