Which appointment term is true?

Which appointment term is true?

• A. It lasts for one year
• B. It lasts indefinitely
• C. It remains in effect until cancellation, expiration, or commissioner action
• D. It ends when the insurer changes product

Answer: (C)

Appointments between an insurer and a producer aren’t tied to a fixed calendar term. The appointment remains in effect until something ends it: the insurer cancels the appointment, the appointment expires under its own terms, or the insurance commissioner takes action (such as suspending or revoking the appointment). This means that simply changing a product line doesn’t automatically terminate the appointment—the producer can still be authorized to represent the insurer’s other products unless the insurer specifically cancels the appointment or regulatory action occurs.

Appointments between an insurer and a producer aren’t tied to a fixed calendar term. The appointment remains in effect until something ends it: the insurer cancels the appointment, the appointment expires under its own terms, or the insurance commissioner takes action (such as suspending or revoking the appointment). This means that simply changing a product line doesn’t automatically terminate the appointment—the producer can still be authorized to represent the insurer’s other products unless the insurer specifically cancels the appointment or regulatory action occurs.