State RegulationsMI specificDifficulty 1/5
An insurer in Michigan files a notice of appointment for a newly hired producer. Within how many days must the director verify the producer's eligibility for appointment?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under M.C.L. 500.1208a(3), once the appointing insurer files the notice of appointment, the director verifies the producer's eligibility within 30 days. This verification step confirms the individual holds the required license so the insurer may lawfully compensate the producer for Michigan business.
Why the other options are wrong
- A) 5 days is a notice period used for intent not to renew certain renewable disability policies under M.C.L. 500.3410, not the appointment verification window.
- B) 15 days is the insurer's deadline to file the notice of appointment under M.C.L. 500.1208a(2), which precedes the director's 30-day verification.
- D) 60 days is the point after which unpaid claim benefits begin accruing 12% annual interest under M.C.L. 500.2006, unrelated to appointment verification.
Memory hook
The insurer files fast (15), the director takes twice as long (30).