Which statement is true regarding notifying the Commissioner after the termination of an insurer’s appointment with a producer?

• A. The insurer is not required to notify the Commissioner
• B. The policyholder must notify the Commissioner
• C. The Commissioner must be notified within 60 days
• D. The Commissioner must be notified within 30 days after the effective date

Answer: (D)

When a insurer ends its appointment with a producer, the regulator needs to be informed promptly so supervision and records stay accurate. The rule requires the Commissioner to be notified within 30 days after the effective date of termination. The effective date is when the appointment officially ends, not when the notice is sent. This short window helps prevent any lapse in oversight and ensures all licenses and active appointments are current.

Think about the other ideas: it isn’t the policyholder who must notify the Commissioner, as they are not the party with the appointment relationship to the insurer. And a 60-day deadline is longer than required, which makes it the wrong timeframe. The important point is that the insurer must report the termination promptly, within 30 days, to maintain proper regulatory supervision and protect consumers.