What is the term for the written agreement allowing an agent to sell an insurance policy?

The correct answer is the term "Appointment," which refers to the formal agreement that authorizes an agent to sell insurance policies on behalf of an insurance company. This agreement is critical in establishing a legal relationship between the agent and the insurer, outlining the agent's rights and the scope of their authority to act on behalf of the insurer.

Through this appointment, an agent gains the ability to represent the insurer and receive commissions for policies sold, which facilitates the distribution of insurance products. It ensures that the agent is trained, understands the products they are selling, and complies with the regulations set by the state.

In contrast, a contract is a broader term that generally refers to any legal agreement between parties, not specifically tied to insurance agency relationships. An endorsement typically refers to a change or addition to an existing policy, often modifying its terms or coverage. Meanwhile, a policy is the actual insurance agreement between the insurer and the insured, detailing the coverage provided, premiums, and other important information but does not refer to the agreement establishing an agent's authority.