A licensed producer MUST be ________ by an insurer to be eligible for soliciting insurance contracts.

A licensed producer must be appointed by an insurer to be eligible for soliciting insurance contracts. In the context of insurance, an "appointment" refers to the formal relationship established between the insurer and the producer, which grants the producer the authority to act on behalf of the insurer to solicit, negotiate, and sell insurance policies. This process is crucial because it ensures that the producer is recognized and authorized to represent the insurer's interests and is in compliance with state regulations.

Being appointed often involves the insurer submitting required documentation to the state insurance department, thereby validating the producer's ability to operate legally under that insurer's brand. This appointment is a safeguard for both the insurer and the consumer, as it establishes standards for conduct and protects the integrity of the insurance market.

While terms like "approved," "admitted," and "authorized" may appear relevant in different contexts, they do not specifically capture the formal recognition between the insurer and the producer necessary for soliciting insurance contracts. The term “appointed” is the standard terminology used in the insurance industry, highlighting the legal and operational framework that governs this relationship.