P&CMAmedium
When a Massachusetts insurer terminates a producer's appointment for cause involving fraud or violation of insurance laws, within what period must the insurer notify the Division of Insurance?
Within 30 days of the termination
BWithin 10 business days of the termination
CWithin 60 days of the termination
DAt the next annual statement filing
Why this is the answer
Under M.G.L. c. 175 §162T, when a Massachusetts insurer terminates a producer's appointment for one of the §162R causes — which include fraud, misappropriating premium, and violating insurance laws — the insurer must notify the Commissioner within 30 days after the termination takes effect. A termination for any other reason must also be reported within 30 days, and the insurer must mail the producer a copy of the notice within 15 days after making it.
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