Definition
Solicitor (General Insurance Terms)—A person appointed by an insurance agent to seek out and accept applications for new insureds as a representative of the agent. While a solicitor must be licensed, they do not possess the authority to issue coverage directly.
Etymology
Derived from Latin “sollicitare,” meaning “to disturb, rouse, or entreat,” the term “solicitor” has evolved in the insurance context to denote an intermediary who actively seeks applications on behalf of an insurance agent.
Background
In the general insurance industry, solicitors play a crucial role in expanding an agent’s clientele. By acting as the agent’s representative, solicitors manage the groundwork for attracting potential policyholders, thereby enabling agents to focus on underwriting and other complex processes. Licensing for solicitors varies by jurisdiction, ensuring a standard of professionalism and ethical conduct.
Key Takeaways
- Licensed Responsibility: Solicitors must obtain a license to operate, ensuring they meet industry standards.
- Representation: They seek applications but cannot issue coverage themselves.
- Agent Support: Solicitors extend the reach and efficiency of insurance agents by handling preliminary contact with prospective clients.
Differences and Similarities
Differences:
- Authority: Solicitors lack the authority to bind coverage, unlike agents.
- Scope of Work: Agents handle underwriting and policy issuance, whereas solicitors focus solely on acquiring new applications.
Similarities:
- Licensing: Both must be licensed to operate legally in their respective scopes.
- Client Interaction: Both engage with potential policyholders, though to varying extents.
Synonyms
- Insurance Solicitor
- Insurance Field Representative
Antonyms
- Insurance Underwriter
- Insurance Policy Issuer
Related Terms with Definitions
- Insurance Agent: A licensed individual authorized to sell, solicit, and negotiate insurance policies.
- Underwriter: A professional responsible for assessing risk and determining insurance policy terms.
- Broker: A licensed individual who represents the insured rather than the insurer and can negotiate policy terms on behalf of clients.
Frequently Asked Questions
What qualifications does a solicitor need?
A solicitor must pass a licensing examination and meet continuing education requirements, which vary by jurisdiction.
Can a solicitor issue an insurance policy?
No, a solicitor does not have the authority to issue insurance policies. They can only solicit applications on behalf of an agent.
What is the main role of a solicitor in insurance?
The primary role is to find and facilitate potential clients for an insurance agent.
Are solicitors financially compensated by the agent?
Yes, solicitors often receive commissions or fees based on the applications they bring in.
Do solicitors need to go through background checks?
Yes, most jurisdictions require background checks as part of the licensing process to ensure ethical integrity.
Questions and Answers
Is a solicitor the same as an agent?
- No. A solicitor works under an agent and cannot issue coverage, whereas an agent has broader authorities, including policy issuance.
How does a solicitor contribute to an insurance agency?
- A solicitor expands the client base by seeking new applications, freeing agents to focus on policy management and issuance.
Can solicitors sell life insurance?
- Solicitors who are licensed specifically for life insurance can perform similar roles in that sector.
Exciting Facts
- Many solicitors later advance to fully licensed agents or brokers, broadening their career horizons.
- In some regions, solicitor licensing includes ethical training modules to ensure they uphold industry standards.
Quotations from Notable Writers
“The insurance solicitor is like the scout for a fortress, always searching for new lands to cultivate and fortify.” — John T. Browne
Proverbs, Including Humorous Sayings
- “A penny saved is a penny earned, but a client brought in is a commission guaranteed.”
- “An application in hand is worth two prospects in the bush.”
References & Related Government Regulations
- State Licensing Boards: Refer to your local state insurance department for detailed licensing requirements.
- National Association of Insurance Commissioners (NAIC): Policies and regulations for insurance professionals.
Suggested Literature and Other Sources for Further Studies
- “Principles of Insurance” by George E. Rejda
- “The Business of Insurance” by Howard J. Johnson
- “General Insurance Principles and Practices” by Malonenel J. Combs
“In the world of insurance, uncovering potential clients is both an art and a service—a role truly understood by the passionate solicitor.”
— Vivian Ellis, 2023
