R590-244-11. Appointments and Termination of Appointments by Insurers

  (1) Initial Appointments.

  (a) An insurer shall electronically appoint an individual or agency licensee with whom the insurer has a contract.

  (b) Appointments are continuous until terminated by the insurer or canceled by the department.

  (c) It is not necessary for an insurer to appoint an individual who is listed as a designee on an appointed agency's license.

  (d) To appoint a person, an insurer shall:

  (i) identify the date the appointment is to be effective; and

  (ii) submit the electronic appointment to the commissioner no later than 15 days from the date the producer contract is executed or receipt of the first insurance application, using SIRCON or NIPR.

  (2) Termination of Appointment.

  (a) An insurer shall electronically terminate the appointment of any previously appointed individual or agency no longer authorized to conduct business on behalf of the insurer in this state.

  (b) To terminate a person's appointment an insurer shall:

  (i) identify the date the termination of appointment is to be effective; and

  (ii) submit the termination of appointment to the department no later than 30 days after the identified effective date of termination, using SIRCON or NIPR.

  (c) Within 15 days after submitting a termination of appointment to the department, an insurer shall notify an individual or agency licensee of the terminated appointment and of the reason for termination by mail or email at the licensee's last known address or email address.

  (3) Termination for Cause.

  (a) In addition to electronically terminating the individual or agency licensee's appointment, an insurer that terminates an individual or agency licensee for cause must send the following information to the department via facsimile or as a PDF attachment to an email:

  (i) the insurer must state that the termination was for cause; and

  (ii) provide the specific circumstances causing the termination for cause.

  (b) If a licensee is terminated for cause, the insurer shall provide a copy of the information that was sent to the department to the licensee at the licensee's last known address or email address.