Final answer:
Insurance agents must verify insurer authorization with the state's insurance department, as the U.S. insurance industry is regulated at the state level with a goal to keep insurance affordable and universal.
Step-by-step explanation:
Agents should check with the state's insurance department to determine if the insurer they are representing is a properly authorized insurer.
Government Regulation of Insurance establishes that the U.S. insurance industry is primarily regulated at the state level.
Since each state has its own insurance department and regulatory framework, these agencies are responsible for licensing insurers within their jurisdiction to meet dual objectives: maintaining reasonable insurance rates and ensuring widespread coverage.
The National Association of Insurance Commissioners serves as a collective organization where state regulators exchange information and collaborate on strategies.
Nonetheless, state insurance departments hold the authority to authorize and oversee insurers operating within their state.