What is required for an agent or solicitor to be valid to transact business?

For an agent or solicitor to be validly authorized to transact business in California, both licensure and appointment are necessary. Licensure refers to the official licensing process that ensures the individual has met the qualifications and standards set by the state to operate as an insurance professional. This usually involves passing a relevant examination and fulfilling educational requirements.

Appointment is also crucial. It involves the official designation by an insurer that allows the agent or solicitor to act on behalf of that insurer in transacting business. This appointment ensures that the agent is operating under the authority and compliance of the insurer’s guidelines.

Thus, possessing just licensure or appointment alone is insufficient for an agent or solicitor to conduct business in the insurance field. The requirement for both elements safeguards consumers by ensuring that agents and solicitors are qualified and operating under the auspices of a recognized insurer.