P&CMAmedium
Under M.G.L. c. 175 §162S, a Massachusetts insurer that wishes to authorize a licensed producer to transact business on its behalf must take which action with the Division of Insurance?
APublish the appointment in a newspaper of general circulation in the producer's home county for three consecutive weeks
BTake no action; appointment is automatic upon the producer obtaining a license
CFile the appointment with the Attorney General under c. 93A
File a Notice of Appointment with the Commissioner naming the producer and the lines of authority
Why this is the answer
M.G.L. c. 175 §162S places the producer-appointment burden on the insurer, not on the producer. The appointing insurer must file a notice of appointment with the Commissioner, in a format the Commissioner approves, within 15 days after the agency contract is executed or the first insurance application is submitted. The notice is typically filed electronically through NIPR's appointment gateway. Without an active appointment, a producer may not solicit, negotiate, or bind on behalf of that insurer in Massachusetts.
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