Question 72

An agent's appointment with an insurer will not be discontinued if another insurer submits an appointment application.

An agent's appointment with an insurer remains intact even when another insurer submits an appointment application, as this action does not directly impact the existing relationship between the agent and the current insurer.

A) the agent's insurance license expires.

If an agent's insurance license expires, they are no longer legally authorized to sell insurance, which would lead to the discontinuation of their appointment with the insurer. This is a clear legal requirement that directly affects the agent’s capacity to operate.

B) the agent files a notice of self termination.

When an agent files a notice of self termination, they are effectively choosing to end their appointment with the insurer. This voluntary action results in the immediate discontinuation of their appointment.

C) another insurer submits an appointment application.

The submission of an appointment application by another insurer does not affect an agent's existing appointment. An agent can maintain appointments with multiple insurers simultaneously, so this circumstance does not lead to discontinuation.

D) the insurer files a notice to terminate the appointment.

If the insurer files a notice to terminate the appointment, this directly results in the discontinuation of the agent's appointment. The insurer has the authority to terminate appointments, thus making this a valid reason for discontinuation.

Conclusion

The correct answer is C because it indicates a scenario that does not lead to the termination of an agent's appointment with their current insurer. In contrast, options A, B, and D represent clear circumstances under which an agent's appointment would be legally and operationally terminated. Understanding these distinctions is essential for agents navigating their professional relationships with insurers.