What is the term for the authorization given to an agent to act on behalf of an insurance company?

The correct term for the authorization given to an agent to act on behalf of an insurance company is "Appointment." This designation signifies that the insurance company has officially recognized the agent to sell its products and services, allowing the agent to bind coverage, represent the insurer, and handle policyholder transactions. An appointment is crucial for establishing a legal and fiduciary relationship between the agent and the insurance company, ensuring that agents follow the rules and regulations governing their conduct.

In contrast, a license refers to the permission granted to individuals to operate as insurance agents or brokers, but it does not specifically denote the relationship with a particular insurance company. Certification typically pertains to the completion of educational requirements or examinations that recognize an agent's qualifications, while endorsement refers to additional coverage or terms added to a policy, rather than the authority granted to an agent. Thus, "Appointment" is the most precise term related to an agent's ability to act on behalf of an insurer.