Producer

"Producer" is the regulatory word for anyone licensed to sell insurance. State insurance laws, many modeled on the NAIC's Producer Licensing Model Act, use it in place of "agent" or "broker." To sell life insurance, a producer must hold a life line of authority in each state where they do business and, for most insurers, be appointed by the company whose products they sell.

In practice, producers come in a few types. A captive agent represents one company or a family of companies. An independent agent holds appointments with many insurers. Brokers and brokerage general agencies place business across carriers. Producers who sell variable life insurance or variable annuities also need a FINRA securities registration. A producer generally needs a license in the state where the sale takes place, so one licensed only in Ohio would need an Indiana nonresident license to sell a policy to an Indiana resident.

Producers are typically paid by commission, which can be a large share of the first-year premium on permanent policies, so it's fair to ask how they're compensated. You can confirm a producer's license through your state insurance department's online lookup. See how to check that an insurance agent is licensed and how life insurance agents are paid.