State RegulationsMA specificDifficulty 2/5
An insurer appoints a Massachusetts producer and, a year later, ends the appointment. Which arrangement matches Massachusetts law on appointments?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under M.G.L. c. 175, § 162S, it is the insurer that files the appointment to place a producer on its behalf; a producer cannot self-appoint. When the insurer ends the appointment, M.G.L. c. 175, § 162T prescribes the termination procedure, including notice to the producer and the Division. Appointments are therefore insurer-initiated filings with statutory exit mechanics.
Why the other options are wrong
- A) The producer does not self-file the appointment; M.G.L. c. 175, § 162S assigns the filing to the insurer, and termination follows the insurer-side process of § 162T.
- B) Licensure alone does not create an appointment; the appointment is a distinct filing the insurer must make under M.G.L. c. 175, § 162S.
- C) Banks and premium remittance play no role in appointments; the filing is the insurer's obligation under M.G.L. c. 175, § 162S.
Memory hook
Insurers file and un-file appointments — appointments in, terminations out, both insurer-side.