New Jersey Life and Health State Practice Exam

What must a producer's secretary do if they solicit prospects on the telephone?

1. Register as a telemarketer

2. Obtain authorization from the insurer

3. Must be licensed as a producer

4. Inform prospects they are not licensed

The correct answer is: Must be licensed as a producer

A producer's secretary must be licensed as a producer if they solicit prospects on the telephone. In the context of insurance practices, soliciting involves activities such as offering insurance products or providing information that could be interpreted as a sales pitch. Licensing ensures that individuals involved in the solicitation of insurance are knowledgeable about the products they represent and comply with regulatory requirements governing insurance marketing and sales. By being licensed, the secretary can engage with potential clients in a manner consistent with state regulations, demonstrating an understanding of the insurance policies being discussed and the obligations that come with selling them. This licensing requirement helps maintain professionalism in the industry and protects consumer interests by ensuring that all solicitors have the necessary training and knowledge. In this scenario, the other options do not align with the specific legal requirements for soliciting insurance, which emphasizes the necessity of having an appropriate license.