Who should be notified if an appointment between an insurer and agent is terminated?

Notifying the insurance department of the state is crucial when an appointment between an insurer and an agent is terminated. This requirement exists to ensure that the regulatory authority is aware of all active and inactive agents in the market to maintain oversight of the insurance industry. By keeping accurate records of agents' statuses, the department can monitor compliance with state laws and regulations, protect consumers, and uphold the integrity of the insurance system.

Remaining options do not fulfill the regulatory needs. Informing the insurance company's president is not necessary for compliance with state laws regarding the appointment, and notifying policyholders or an agent’s previous clients does not address the regulatory reporting requirements, nor is it legally mandated.