New Jersey Life Producer Practice Exam

After canceling an agency contract, how many days of notice must an insurer give to the Commissioner?

1. 15 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 15 days

When an insurer cancels an agency contract, they are required to provide notice to the Commissioner of Insurance. This requirement helps ensure that the regulatory body is kept informed about the operational changes within insurance agencies, which in turn helps maintain oversight and consumer protection. In New Jersey, the specific requirement is to give 15 days of notice to the Commissioner after canceling an agency contract. This relatively short notice period emphasizes the dynamic nature of the insurance business, where quick adjustments might be necessary. The intention behind this regulation is to facilitate timely updates and maintain the integrity of the insurance market, ensuring that any changes in agency contracts are transparent and properly recorded. The other potential options of 30, 45, or 60 days do not reflect the regulatory requirement in New Jersey for notifying the Commissioner following the cancellation of an agency contract. Thus, understanding the 15-day notice requirement is crucial for compliance and operational awareness within the insurance industry in the state.