Which statement best describes the roles of producers and adjusters in Texas licensing and practice?

Which statement best describes the roles of producers and adjusters in Texas licensing and practice?

• A. A producer sells or negotiates insurance; an adjuster handles claims and may investigate and settle; both require licensure.
• B. A producer handles claims; an adjuster sells policies; neither requires licensure.
• C. A producer only works with insureds in underwriting; an adjuster only handles marketing.
• D. A producer manages claims after settlement; an adjuster issues policy declarations.

Answer: (A)

In Texas, two distinct licensed roles govern how insurance work is done: producers and adjusters. A producer is the one who sells or negotiates insurance on behalf of an insurer or as a broker. An adjuster is the professional who handles claims—investigating, evaluating, and negotiating settlements. Both roles require licensure to practice lawfully in property and casualty insurance. This statement lines up with how Texas licensing works: producers sell or negotiate policies, adjusters handle claims (including investigation and settlement), and each must hold an appropriate license. The other options misstate the roles or licensure requirements, such as claiming claims are handled by producers or that licensure isn’t needed.

In Texas, two distinct licensed roles govern how insurance work is done: producers and adjusters. A producer is the one who sells or negotiates insurance on behalf of an insurer or as a broker. An adjuster is the professional who handles claims—investigating, evaluating, and negotiating settlements. Both roles require licensure to practice lawfully in property and casualty insurance.

This statement lines up with how Texas licensing works: producers sell or negotiate policies, adjusters handle claims (including investigation and settlement), and each must hold an appropriate license. The other options misstate the roles or licensure requirements, such as claiming claims are handled by producers or that licensure isn’t needed.