State RegulationsVA specificDifficulty 2/5
A Virginia insurer terminates a producer's appointment for cause. What reporting obligations follow under Virginia law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-1834 imposes a two-step disclosure when an appointment is terminated for cause: the insurer reports the termination to the Commission within 30 days, and it mails the producer a copy of the report within 15 days. The copy requirement gives the producer prompt notice of what the insurer has said, which matters because the report becomes part of the producer's regulatory record and triggers the producer's right to respond.
Why the other options are wrong
- A) The producer is entitled to a copy; Va. Code § 38.2-1834 requires the insurer to mail one within 15 days, and the Commission report is due in 30 days, not 15.
- C) Both figures are inflated; the statute sets the report at 30 days and the copy at 15 days.
- D) The report is mandatory on termination for cause; it does not depend on the producer asking for it.
Memory hook
For-cause firing: report in 30, mail the copy in 15.