State RegulationsPA specificDifficulty 1/5
When an insurer terminates a producer's appointment, what duty does 40 P.S. § 310.71a impose with respect to the Pennsylvania Insurance Department?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
40 P.S. § 310.71a governs appointment terminations and requires the insurer to notify the Pennsylvania Insurance Department when it terminates a producer's appointment. The notice keeps the department's records aligned with reality: a terminated producer must not appear as authorized to sell for that insurer. Without this reporting duty, the appointment system under 40 P.S. § 310.71 would lose its reliability.
Why the other options are wrong
- A) Termination is not merely private; 40 P.S. § 310.71a builds the departmental reporting step into the process.
- B) Concealment is the opposite of the duty; the insurer must report the termination to the department.
- D) The statute requires notification, not confiscation of a producer's client relationships; clients are not reassigned by regulation.
Memory hook
Terminated appointment? Tell the department — the record must match the truth.