What is the purpose of a license issued to a general lines agent?

The purpose of a license issued to a general lines agent is to authorize agents to engage in insurance business with public interest. This licensing ensures that agents are qualified and adhere to regulatory standards, which are designed to protect consumers and maintain the integrity of the insurance market. By requiring agents to obtain a license, regulatory bodies can oversee and enforce compliance with laws that govern insurance practices, thereby safeguarding the rights of the public and promoting ethical conduct within the insurance industry.

In contrast, some of the other options suggest ideas that do not align with the primary objective of licensing. Operating without public oversight would undermine consumer protection, and while commission rates can vary, licensing does not inherently increase them. Additionally, while licensed agents can sell policies, issuing them directly is not necessarily a universal function of all licensed agents, especially in contexts where the policies must come from authorized insurers.