State RegulationsVA specificDifficulty 1/5
A Virginia insurer files a producer appointment that turns out to be invalid. Within how many business days must the Commission notify the insurer that the appointment is invalid?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-1834 requires the Commission to notify the insurer within 5 business days when an appointment is invalid. The short deadline protects both sides of the relationship: the insurer learns quickly that it lacks a validly appointed producer, and the producer learns that the purported appointment carries no authority. Quick notice also prevents commissions from flowing to a person whose appointment cannot stand.
Why the other options are wrong
- A) 30 days governs the appointment-notification and rejection windows, not the Commission's invalidity notice under Va. Code § 38.2-1834.
- B) 15 days is the for-cause report mailing deadline, a different appointment timeline.
- D) 10 days is the stop-soliciting window after termination, not the invalidity-notice deadline.
Memory hook
Bad appointment? The Commission calls it out within 5 business days.