Final answer:
The insurer is regarded as the principal when a producer is appointed, as they have authorized the producer to act on their behalf. This relationship establishes the insurer as being responsible for the actions of the producer within the scope of their contractual agreement. The correct option is D) Insurer
Step-by-step explanation:
When a producer is appointed, the insurer is considered the principal. This is because, in the realm of insurance, a producer is typically an agent or broker who is authorized to sell and manage insurance policies on behalf of the insurer.
The insurer entrusts the producer with the authority to act in its interest, thus establishing an agency relationship where the insurer is the principal and the producer acts as the agent.
As a principal, the insurer is responsible for the actions of the producer that are within the scope of their authority as defined by their contractual agreement. The correct option is D) Insurer