Where is an agent's authority to solicit applications granted?

An agent's authority to solicit applications is granted through the agent's contract with the insurer. This contract outlines the terms of the relationship between the agent and the insurer, specifying the agent's responsibilities, the scope of their authority, and the types of products they are authorized to sell on behalf of the insurer. This formal agreement ensures that agents operate within the legal framework established by the insurer and regulatory bodies.

Having a written contract is essential in the insurance industry, as it defines the parameters of the agent's role and protects both the agent and the insurer. It also provides a clear basis for the agent's authority, ensuring compliance with laws and regulations in the jurisdiction where they operate.