State RegulationsVA specificDifficulty 2/5
A Virginia insurer contracts with a newly appointed producer, who promptly submits her first application for coverage. Within how many calendar days of that first submitted application must the insurer notify the Commission of the appointment?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-1833 requires the insurer to notify the Commission within 30 calendar days of the first application submitted by a newly contracted producer. The trigger is the producer's actual first application, not the signing of the contract, so insurers must monitor production activity rather than paperwork dates. The same 30-day window is the period within which the appointment may be rejected if the producer fails to meet statutory requirements.
Why the other options are wrong
- A) 10 days is the window for a terminated producer to stop soliciting an insurer's business, not the appointment-notice window under Va. Code § 38.2-1833.
- C) 60 days overstates the deadline; the notice is due within 30 calendar days of the first application.
- D) 15 days is the window for mailing a copy of a for-cause termination report, a different appointment-related timeline.
Memory hook
First application filed? The insurer has 30 days to tell the Commission.