State RegulationsMI specificDifficulty 1/5
An insurer executes an agency contract with a producer in Grand Rapids. Under Michigan law, within how many days must the appointing insurer file a notice of appointment with the director?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.1208a(2) requires the appointing insurer, not the producer, to file a notice of appointment within 15 days of executing the agency contract or of the first insurance application being submitted. The director then verifies the producer's eligibility within 30 days. A producer who sells before the insurer files the appointment risks unpaid-commission disputes, so insurers file promptly after contracting.
Why the other options are wrong
- A) 10 days is not the appointment-filing deadline; it resembles the free-look period found in other policy contexts and understates the statutory 15-day window.
- C) 30 days is the period the director has to verify eligibility under M.C.L. 500.1208a(3), not the insurer's filing deadline.
- D) 45 days has nothing to do with appointments; it is the clean-claim payment window under M.C.L. 500.2006, and pre-licensing education is not the trigger event.
Memory hook
Fifteen to file, thirty to verify: the insurer files in 15 days, the director verifies in 30.