A Virginia insurer receives an appointment request for a producer and discovers that the producer does not meet the statutory qualifications. Within how many calendar days may the insurer reject the appointment?

Why D is correct

Under Va. Code §§ 38.2-1833 and 38.2-1834, an appointment in Virginia may be rejected within 30 calendar days. The rejection window runs alongside the 30-day notification duty that follows a newly contracted producer's first application, giving the insurer or the Commission a full month to screen the producer against the statutory qualifications. If the appointment is not rejected within that window, the producer's authority to transact the insurer's business stands.

Why the other options are wrong

• A) 5 business days is the Commission's deadline for telling an insurer that an appointment is invalid, not the rejection window.
• B) 10 calendar days is the producer's stop-soliciting deadline after termination, unrelated to rejecting a new appointment.
• C) 60 calendar days doubles the actual window; rejection must occur within 30 calendar days.

Memory hook

Screen or accept: 30 days to reject an appointment, then the door closes.