Final answer:
The authority given to the producer by the insurer is outlined as a Binder, which is a temporary insurance contract granting immediate coverage. The correct option is 3.
Step-by-step explanation:
The option that outlines the authority given to the producer on behalf of the insurer is Option 3: Binder. A binder is a temporary insurance contract that provides immediate coverage before the issuance of a policy.
It grants the producer, typically an insurance agent or broker, the power to extend insurance coverage on behalf of the insurance company.
This binding authority is essential in insurance transactions as it allows the producer to provide proof of insurance to the client instantly.