State RegulationsNC specificDifficulty 3/5
An insurer terminates a producer's appointment for cause in North Carolina. Which sequence of notices and deadlines complies with the producer-termination statute?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
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.