What term refers to the authority given to a licensee to transact or adjust insurance?

The term that refers to the authority given to a licensee to transact or adjust insurance is "appointment." In the context of insurance, an appointment is a formal designation that grants a licensed agent or broker the permission to act on behalf of an insurance company. This is crucial because it ensures that the licensee has the official capacity to represent the insurer and engage in activities such as selling policies or handling claims.

Having an appointment not only formalizes the relationship between the agent and the insurer but also ensures compliance with regulatory requirements governing how insurance products can be marketed and sold. Without this appointment, a licensee would be unable to legally operate within the realm of insurance transactions for that particular insurer.

Understanding the role of an appointment is essential for both agents and consumers, as it establishes trust and legality in the agent-insurer relationship.