What requirement must a producer's secretary fulfill if soliciting prospects on the telephone?

When a producer's secretary is soliciting prospects on the telephone, they must be licensed as a producer. This requirement is in place to ensure that anyone engaging in the solicitation of insurance business is properly trained, knowledgeable about the products being offered, and compliant with the regulations governing the insurance industry. Licensing serves as a means of consumer protection, ensuring that the person soliciting insurance has met specific qualifications and understands the laws applicable to insurance sales and practices.

This requirement is crucial because soliciting insurance involves advising prospective clients on coverage options, which can have significant financial implications. A licensed individual can provide appropriate guidance and information accurately while adhering to ethical standards set by the regulatory authority.

While options such as having a high school diploma, being registered with the insurance department, or completing a training program may be beneficial, they do not replace the necessity of holding a proper insurance license when directly involved in soliciting insurance. These other criteria might be part of the requirements for a producer but do not specifically fulfill the legal requirement to engage in solicitation activities.