Final answer:
The authority given by an insurer or employer to a licensee to transact insurance or adjust claims is known as an appointment.
Step-by-step explanation:
The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on their behalf is called an appointment. An occupational license is a form of credentialing issued by government agencies that indicates a licensee has met certain educational or testing requirements.
In the context of insurance, licensees are typically appointed to conduct business, such as managing premium payments or addressing risks associated with a defined risk group. The licensee needs to understand various aspects such as the terms of a service contract or a warranty to effectively serve the customers on behalf of the insurer.