Which of the following statements is true about producers?

Producers are individuals or entities who solicit, negotiate, or sell insurance products on behalf of insurance companies. The correct statement is that they must have a recorded history of transactions. This requirement is essential for maintaining transparency and accountability in the insurance industry. A recorded history ensures that producers are tracking their business activities, which helps in overseeing compliance with regulations and standards set by state insurance departments.

Having a documented record of transactions also assists in establishing trust with clients and insurance companies, as they can evaluate the producer's performance and ethical standards over time. Transparency in these records is vital for regulatory audits and helps in protecting consumers by ensuring that producers are acting in their best interests.

In contrast, the other statements do not accurately reflect the regulations governing producers. They are required to have proper licensing to operate legally, which includes obtaining a business license as mandated by state laws. Changes in business locations must also be communicated to the relevant authorities to uphold licensing requirements and avoid potential legal issues. Thus, the statement about the necessity of maintaining a recorded history of transactions remains true within the framework of insurance industry regulations.