Under Louisiana law, what is the agreement between an insurance producer and insurer referred to?

In Louisiana, the formal relationship established between an insurance producer and an insurer is referred to as an appointment. This designation denotes that the producer has been authorized by the insurer to act on its behalf in selling and servicing insurance policies. The appointment is critical as it establishes the insurance producer's authority to represent the insurer, ensuring compliance with state regulations and facilitating the proper handling of business transactions.

This structure is important for maintaining accountability and defining the scope of authority the producer holds, which is essential for consumer protection and regulatory oversight. Other terms such as contract or policyholder agreement, while related to insurance relationships, do not specifically capture the formal agreement of representation that an appointment entails. Thus, understanding this terminology is vital for those working in or studying the insurance industry in Louisiana.