What is the primary purpose of a temporary insurance agent's license?

The primary purpose of a temporary insurance agent's license is to prevent hardship after a producer's death. This type of license allows a designated individual to step in and continue to operate in the best interests of the client's policies and the business relationships that the deceased agent established. By granting temporary authority, insurance companies aim to maintain continuity and ensure that clients do not experience disruptions in service or coverage during a difficult transition period.

The other options do not reflect the main intention of the temporary license. New agents selling policies typically require more permanent licensing and training. Inter-state licensing is dealt with through different mechanisms that do not rely on temporary licenses. Modifying existing policies falls under the responsibilities of licensed agents who are not necessarily in the temporary role. Thus, the focus on mitigating hardship for clients and maintaining service continuity after a producer’s death is what establishes the primary function of a temporary insurance agent's license.