New Jersey Life Producer Law Practice Test

Upon cancellation of an agency contract with a producer, how long does an insurer have to notify the Commissioner?

1. 60 days

2. 15 days

3. 30 days

4. 90 days

The correct answer is: 30 days

An insurer is required to notify the Commissioner within 30 days upon the cancellation of an agency contract with a producer. This timeframe is designed to ensure regulatory oversight and maintain transparency in the insurance marketplace. Notifying the Commissioner promptly helps in tracking the activities of producers and ensures that the insurance industry remains compliant with state regulations. This notification is essential for monitoring how producers operate and for maintaining the integrity of the insurance system within New Jersey. Understanding this time requirement is crucial for both insurers and producers, as it fosters accountability and helps to prevent potential lapses in compliance. The specific 30-day duration strikes a balance between allowing insurers to process cancellations and ensuring timely communication with regulatory authorities.