Question

In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?

a) if there are no authorized insurers for a specific type of coverage in this state
b) if the insurer needs to investigate insurance claims
c) under no circumstances
d) if the producer had no knowledge that the company is unauthorized

Answer 1

A producer would be allowed to obtain insurance through an unauthorized insurer if there are no authorized insurers for a specific type of coverage in a state.

Step-by-step explanation:

In the scenario where there are no authorized insurers for a specific type of coverage in a state, a producer would be allowed to obtain insurance through an unauthorized insurer. This is because they have no other option to provide coverage for their clients. It is important to note that this should be a last resort and the producer should make efforts to find authorized insurers if possible.