Which appointment term is true?

• A. It lasts for one year
• B. It lasts indefinitely
• C. It remains in effect until cancellation, expiration, or commissioner action
• D. It ends when the insurer changes product

Answer: (C)

Appointments between an insurer and a producer aren’t tied to a fixed calendar term. The appointment remains in effect until something ends it: the insurer cancels the appointment, the appointment expires under its own terms, or the insurance commissioner takes action (such as suspending or revoking the appointment). This means that simply changing a product line doesn’t automatically terminate the appointment—the producer can still be authorized to represent the insurer’s other products unless the insurer specifically cancels the appointment or regulatory action occurs.