Final answer:
The relationship between an insurance company and the appointed producer is defined by the agency agreement, which outlines the terms of their partnership. The insurance industry is regulated at the state level, coordinated with help from the National Association of Insurance Commissioners.
Step-by-step explanation:
The relationship between an insurance company and the producer it appoints to represent its products is defined by the agency agreement. This agreement is a contract that stipulates the terms and conditions under which the producer (such as an agent or broker) operates, including their rights, responsibilities, and the commissions they will receive for their services. It is important to note that the insurance industry, including agency relationships, is primarily regulated at the state level, with the National Association of Insurance Commissioners (NAIC) serving to coordinate regulatory efforts and exchange information between the states.