State RegulationsPA specificDifficulty 3/5
An insurer terminates a producer's appointment, but the producer's Pennsylvania license remains active. What can the producer lawfully do afterward?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The license and the appointment are distinct credentials. The producer's license, issued through the Pennsylvania Insurance Department, is the personal authority to transact insurance; the appointment under 40 P.S. § 310.71 is the insurer-specific authorization, and its termination under 40 P.S. § 310.71a ends only the authority to act for that insurer. The producer may keep selling for other appointing insurers but must stop all sales for the terminating one.
Why the other options are wrong
- B) Appointment termination does not cancel a license; the producer's own credential remains valid with the Pennsylvania Insurance Department.
- C) Once the appointment is terminated, selling that insurer's products is unauthorized; the producer's remaining license term does not extend that authority.
- D) Verbal permission from a manager cannot substitute for a statutory appointment under 40 P.S. § 310.71.
Memory hook
License survives, appointment dies: sell for others, never for the ex-insurer.