As an insurance producer acting as an agent, which action is permissible?

• A. Discount the premiums
• B. Change policy terms without consent
• C. Bind coverage beyond authority
• D. Alter the insurer's filings

Answer: (A)

An agent must act within the insurer’s authority, including what is allowed in the approved rate filings. Providing a discount to the premium is permissible when the insurer has authorized that discount and it’s part of the approved rate plan. This reflects pricing adjustments the insurer has already approved.

In contrast, changing policy terms without the insurer’s consent, binding coverage beyond the agent’s authority, or altering the insurer’s filings would exceed what the agent is allowed to do and could violate regulations and the contract between the insurer and the agent.