Section 500.1208a - Appointment of producer as agent; notice of appointment; filing; verification of eligibility; fee.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.1208a Appointment of producer as agent; notice of appointment; filing; verification of eligibility; fee.
Sec. 1208a.
(1) An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed.
(2) To appoint a producer as its agent, the appointing insurer shall file, in a format approved by the commissioner, a notice of appointment for the qualifications held by that insurance producer within 15 days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint an insurance producer to all or some insurers within the insurer's holding company system or group by the filing of a single appointment request.
(3) Upon receipt of the notice of appointment, the commissioner shall verify within a reasonable time not to exceed 30 days that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the commissioner shall notify the insurer within 5 days of that determination.
(4) An insurer shall pay an appointment fee and a renewal appointment fee as provided under section 240(1)(c) for each insurance producer appointed or renewed by the insurer.
History: Add. 2001, Act 228, Eff. Mar. 1, 2002
Popular Name: Act 218