To transact business on behalf of the employer, a producer must:

• A. The producer files a report with the commissioner.
• B. The insurer appoints the producer and the appointment is obtained within 15 days after submitting the application.
• C. The producer pays a penalty of $25 per offense.
• D. None of the above.

Answer: (B)

To transact business on behalf of an insurer, a producer must be officially appointed by that insurer. The appointment grants the producer authority to represent the insurer in selling and handling policies. In Minnesota, this appointment must be obtained within 15 days after the producer submits the application for appointment, ensuring the producer is authorized to operate without a gap in authority. Filing a report with the commissioner isn’t what authorizes the producer to transact business, and paying a penalty isn’t a prerequisite for doing business—it’s a potential consequence of violations. Therefore, the essential requirement is that the insurer appoints the producer and does so within the 15-day window after the application is submitted.