True or False: The agency contract is an agreement made between the insurer and the insured.

The agency contract is not actually an agreement between the insurer and the insured; rather, it is a contract between the insurer and the agent or agency acting on behalf of the insurer. This contract defines the relationship and responsibilities of the agent in transacting insurance business for the insurer.

In this context, the insurer delegates certain powers and responsibilities to the agent, who then interacts with the insured (the policyholder) to issue policies, collect premiums, and perform other tasks as outlined in the agency contract. The insured enters into a separate insurance policy contract with the insurer, which outlines the terms of coverage and obligations of both parties.

Understanding this distinction is key in grasping how the insurance process functions, particularly in the field of bail bonds and insurance licensing. The terms of the agency contract do not directly govern the relationship between the insured and the insurer. Therefore, the statement is indeed false.