Which statement best describes when an agent's appointment terminates?

Which statement best describes when an agent's appointment terminates?

• A. annually renewed
• B. upon lapse of policy
• C. withdrawn or terminated
• D. after a 5-year term

Answer: (C)

An agent’s appointment is the insurer’s authorization for the agent to represent and sell its products. This relationship isn’t a fixed term or tied to a policy’s status, and it isn’t automatically renewed each year. It ends when the insurer withdraws or terminates the appointment (or the agent resigns or is removed). A policy lapse is a separate event and does not by itself terminate the agent’s appointment.

An agent’s appointment is the insurer’s authorization for the agent to represent and sell its products. This relationship isn’t a fixed term or tied to a policy’s status, and it isn’t automatically renewed each year. It ends when the insurer withdraws or terminates the appointment (or the agent resigns or is removed). A policy lapse is a separate event and does not by itself terminate the agent’s appointment.