An insurer in North Carolina terminates a producer's appointment. Which sequence of notice deadlines does G.S. 58-33-56 require?

Why D is correct

Under G.S. 58-33-56, an insurer that terminates a producer — for cause or otherwise — must notify the Commissioner within 30 days after the termination becomes effective, send a copy of the notification to the producer within 15 days after making the notification, and the producer then has 30 days after receiving the copy to submit written comments. The 30-15-30 cascade gives the regulator, the producer, and finally the producer's voice their allotted windows.

Why the other options are wrong

• A) The initial notice to the Commissioner is due within 30 days, not 15, under G.S. 58-33-56.
• B) The producer's copy is due within 15 days and the producer's comments within 30 days; this option reverses the two windows.
• C) The Commissioner notice must be filed within 30 days, not 15, under G.S. 58-33-56.

Memory hook

Termination cascade: 30 to the state, 15 to the producer, 30 to talk back.

Why D is correct

Under G.S. 58-33-56, an insurer terminating a producer, whether for cause or otherwise, must notify the Commissioner within 30 days after the effective date of termination, send the producer a copy of the notification within 15 days after making it, and the producer may then file written comments with the Commissioner within 30 days after receiving the copy.

Why the other options are wrong

• A) The notification to the Commissioner is due within 30 days, not 15, and this option also reverses the copy and comment periods.
• B) The first deadline is correct, but the producer's copy is due within 15 days and the comments within 30 days after receipt; both are reversed here.
• C) The notification to the Commissioner is due within 30 days under G.S. 58-33-56, not 15 days.

Memory hook

Commissioner 30, copy 15, comments 30: down, down, back up.

Why C is correct

Under G.S. 58-33-56, the notice obligation attaches to every termination of a producer's appointment or employment, whether or not the producer was terminated for cause. The insurer must notify the Commissioner within 30 days after the effective date of the termination and send the producer a copy of the notification within 15 days after making it, which is what enables the producer's written-comment right. Routine performance terminations are covered exactly like misconduct cases.

Why the other options are wrong

• A) For-cause and no-cause terminations are treated alike; the duty attaches to every termination under G.S. 58-33-56.
• B) The insurer, not the producer, bears the reporting duty when it terminates the appointment or employment.
• D) The duty operates automatically upon termination; it does not depend on a request from the producer.

Memory hook

Any termination means notice — for cause or not, the Commissioner hears about it.

Why C is correct

G.S. 58-33-56 builds a three-step timeline: the insurer must notify the Commissioner within 30 days of terminating the producer (for cause or otherwise), send the producer a copy of that notification within 15 days after making it, and the producer then has 30 days after receiving the copy to file written comments with the Commissioner. Keeping the three deadlines straight — 30, 15, 30 — is the point of the rule.

Why the other options are wrong

• A) 10 days is not part of the termination-notice sequence; the producer's comment window runs a full 30 days.
• B) 15 days is the insurer's deadline for delivering the copy to the producer, not the producer's deadline for filing comments.
• D) 60 days doubles the statutory comment period and appears nowhere in G.S. 58-33-56.

Memory hook

Termination timeline: 30 to the Commissioner, 15 to the producer, 30 to comment.

Why A is correct

G.S. 58-33-56(a) requires the insurer to notify the Commissioner within 30 days after terminating a producer, whether or not the termination was for cause; G.S. 58-33-56(b) requires a copy of that notification to go to the producer within 15 days; and G.S. 58-33-56(d) lets the producer submit written comments within 30 days after receiving the copy.

Why the other options are wrong

• B) This swaps the periods; the copy goes to the producer within 15 days and the producer has 30 days to comment, per G.S. 58-33-56(b) and (d).
• C) No 90- or 180-day periods appear in G.S. 58-33-56; the statutory deadlines are 30 days to the Commissioner, 15 days for the producer's copy, and 30 days for comments.
• D) Five business days is the replacement notice deadline under 11 NCAC 12 .0612(a)(2), not a termination-notice period under G.S. 58-33-56.

Memory hook

30 to the Commissioner, 15 to the producer, 30 to respond.