What constitutes proof of authority for an adjuster or representative acting for an insurer?

• A. The person must be authorized (licensed) and have evidence of appointment or contract to act on behalf
• B. The person needs no authorization if the insurer is reputable
• C. The person must be elected by policyholders
• D. The person must have a business card

Answer: (A)

Proof of authority means the person acting for the insurer is officially authorized to do so. For an adjuster or representative, that requires two things: the person must be licensed, and there must be evidence of appointment or a contract from the insurer authorizing them to handle claims on its behalf. The license confirms regulatory compliance, while the appointment or contract defines the scope of the authority and who the insurer has entrusted to act for it. This helps insureds know who is representing the insurer and ensures accountability. A business card, the insurer’s reputation, or being elected by policyholders does not establish authority; only licensure plus formal appointment or contract does.