When does an agent's appointment to act as an agent remain in effect?

When does an agent's appointment to act as an agent remain in effect?

• A. Until terminated or written by the insurer or the agent
• B. Until the end of the calendar year
• C. For a fixed 12-month term
• D. Only while the insurer pays appointment fees

Answer: (A)

An agent’s appointment is the contract that authorizes the agent to act on behalf of the insurer. It stays in effect until someone with authority to end it—usually either the insurer or the agent—terminates it, typically through written notice. The appointment isn’t tied to a calendar year, a fixed 12-month term, or ongoing appointment fees. Those factors don’t determine how long the appointment lasts. So the appointment remains in effect until it’s terminated in writing by either party.

An agent’s appointment is the contract that authorizes the agent to act on behalf of the insurer. It stays in effect until someone with authority to end it—usually either the insurer or the agent—terminates it, typically through written notice. The appointment isn’t tied to a calendar year, a fixed 12-month term, or ongoing appointment fees. Those factors don’t determine how long the appointment lasts. So the appointment remains in effect until it’s terminated in writing by either party.