If an agent's appointment is terminated for cause, who is required to file a statement with TDI?

If an agent's appointment is terminated for cause, who is required to file a statement with TDI?

• A. The insurer only
• B. The agent only
• C. Either the insurer or the agent
• D. TDI

Answer: (C)

When an agent’s appointment is terminated for cause in Texas, a notice must be filed with the Texas Department of Insurance. Either party—the insurer who appointed the agent or the agent themselves—may submit this filing. This flexibility ensures timely reporting and keeps TDI’s records accurate, helping prevent a terminated agent from acting under the insurer’s authority without proper status. The goal is consumer protection and proper licensing records, not that TDI itself files the notice.

When an agent’s appointment is terminated for cause in Texas, a notice must be filed with the Texas Department of Insurance. Either party—the insurer who appointed the agent or the agent themselves—may submit this filing. This flexibility ensures timely reporting and keeps TDI’s records accurate, helping prevent a terminated agent from acting under the insurer’s authority without proper status. The goal is consumer protection and proper licensing records, not that TDI itself files the notice.