What document demonstrates that someone is authorized to act as an insurance agent, broker, or adjuster?

• A. Insurance Contract
• B. License
• C. Policy Statement
• D. Certificate of Coverage

Answer: (B)

The document that demonstrates someone is authorized to act as an insurance agent, broker, or adjuster is a license. This license is issued by the appropriate regulatory authority in the state, allowing individuals to legally engage in insurance activities. Obtaining a license typically requires meeting specific educational and examination requirements, as well as adhering to ongoing regulations to maintain that license.

This certification is essential for ensuring that agents, brokers, and adjusters possess the necessary knowledge and skills to operate within legal boundaries and uphold consumer protection standards in the insurance industry. It also serves to establish the legitimacy and credibility of the professional in their interactions with clients and insurers.

In contrast, an insurance contract is an agreement between the insurer and the insured detailing the terms of coverage, while a policy statement provides summary information about a particular policy. A certificate of coverage acts as proof that a person or entity has insurance coverage but does not confer the authorization to act on behalf of an insurance company.