PLPennsylvaniahard
A Pennsylvania producer holding a P&C license but no appointment with Carrier X wants to place a personal homeowners policy with that carrier through an appointed brokerage. Under PA law, which arrangement is most consistent with 40 P.S. § 310.71?
Acting as a sub-broker who places the business through the appointed brokerage of record
BForging an appointment letter from Carrier X to expedite binding
CBinding Carrier X directly without any appointment because the customer asked for that carrier
DHolding the customer's premium indefinitely until Carrier X agrees to appoint the producer
Why this is the answer
Under 40 P.S. § 310.71, a Pennsylvania producer must hold an appointment from the insurer to act as that insurer's agent. A licensed producer who lacks the appointment may still serve the client by acting as a sub-broker through an appointed brokerage of record — the appointed brokerage signs the application and is the agent of record. Forgery, unappointed binding, and indefinite premium holding violate §§ 310.71, 310.49, and 310.91.
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