PLCaliforniamedium
Pacific Coast Mutual terminates its agency appointment of a California Personal Lines Broker-Agent on April 1. Under Cal. Ins. Code § 1708, by what deadline must the insurer file written notice of termination with the Commissioner, and what is the legal status of the agent's authority in the interim?
AWithin 7 days of termination; the agent's binding authority ends immediately the moment the appointment is terminated by the insurer
Within 30 days after termination; the agent may not transact new business after the effective date even while the filing window remains open
CWithin 60 days of termination; the agent remains fully appointed and may bind new risks until the written notice is actually filed
DWithin 90 days of termination; the agent may continue writing brand-new business on behalf of the insurer until CDI formally acknowledges receipt of the filing
Why this is the answer
Cal. Ins. Code § 1704 controls how an agency appointment is created (insurer files an appointment notice with the Commissioner), and § 1708 controls how it ends. The terminating insurer must file written notice with the Commissioner within 30 days of the effective date of termination. That window is for the regulatory paperwork; it does NOT extend the agent's binding authority. Once the appointment terminates, any business the agent purports to write on behalf of the insurer is unauthorized and exposes both the agent and insurer to discipline.
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