State RegulationsNC specificDifficulty 3/5
An insurer in North Carolina terminates a producer's appointment. Which sequence of notice deadlines does G.S. 58-33-56 require?
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Answer & full 3-part explanation (select an option above, or peek)
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.