New Jersey Life Producer Law Practice Test

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

1. 15 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 30 days

When an agency contract is terminated, a producer is required to notify the Commissioner within 30 days of the termination. This requirement is in place to ensure that the state regulatory authority is kept informed of changes in agency relationships, which is crucial for maintaining oversight of the insurance industry and protecting consumer interests. A timely notification allows the Commissioner to track producers' activities and ensure compliance with regulatory standards. The rationale behind the 30-day timeframe is to provide a balance between allowing producers sufficient time to inform the Commissioner and ensuring that the information is reported quickly enough to maintain an accurate record of licensed producers. This time frame is standard in many jurisdictions as part of maintaining regulatory integrity in the insurance marketplace.