Primerica Life Producer Practice Test

How many days must an insurer notify the Commissioner in writing after canceling an agency contract?

1. 30 days

2. 15 days

3. 10 days

4. 20 days

The correct answer is: 15 days

An insurer is required to notify the Commissioner in writing within 15 days after canceling an agency contract. This requirement is in place to ensure that regulatory authorities are kept informed about changes in agency operations and to maintain oversight of the insurance market. Timely notification helps the Commissioner monitor compliance with industry standards and protect the interests of policyholders. The reason for this specific timeframe is to allow for a prompt update of records and ensure that all parties involved, including the Commissioner, are aware of the changes. It demonstrates the need for accountability and transparency within the insurance industry. Prompt reporting helps prevent potential issues that might arise from a lack of communication about agency relationships and allows the Commissioner to respond appropriately if necessary.