California Insurance Code & EthicsQuestion 77 of 716
An agent's appointment with a particular insurer is terminated for cause. The insurer must notify the Commissioner of the termination and the reasons:
a.Only at the next annual appointment renewal cycle for that insurer
b.Never; appointments are private contractual matters between the parties
c.Only if the Commissioner specifically asks the insurer for the reasons
d.Promptly, by filing a written notice that may include the cause
Explanation
Insurers must promptly file a Notice of Appointment Termination with CDI and, when the termination is for cause involving violations of law or ethics, disclose the underlying facts so the Department can investigate.
Law Reference: Cal. Ins. Code §1724This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)