P&CIllinoiseasy
Under 215 ILCS 5/500-50, which party is required to file the appointment notice with the Illinois Department of Insurance when an insurer authorizes a producer to act on its behalf?
AThe producer must file the appointment within 30 days of being authorized
BThe PSI testing vendor files the appointment after the licensing exam
CAppointments are self-executing and require no filing with IDOI
The appointing insurer must file the appointment notice with IDOI
Why this is the answer
Under 215 ILCS 5/500-50 the duty to file a producer appointment lies with the appointing insurance company, not the producer. The insurer must notify IDOI within 15 days of executing the agency contract and pay the appointment fee. Termination of an appointment also requires the insurer to notify IDOI under 215 ILCS 5/500-35. A producer's license to transact insurance and an insurer's appointment are distinct: a licensed producer cannot bind an insurer without an active appointment.
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