How can insurers appoint or terminate a licensed producer in Texas?

• A. By appointing licensed producers to issue policies; termination or non-renewal of appointment is handled per regulatory procedures and notice.
• B. By the insured's request only
• C. By court order
• D. By automatic renewal with no notice

Answer: (A)

In Texas, an insurer’s authority to transact insurance with a particular producer comes from a formal appointment. This appointment creates the official relationship allowing the producer to issue policies on behalf of the insurer. If the insurer wants to end that relationship, termination or a non-renewal of the appointment must follow the regulatory procedures and notice requirements set by Texas law and the Texas Department of Insurance. This typically involves written notice and filing or reporting to the department, ensuring the producer and affected parties are properly informed. The appointment is not something the insured can grant or end by themselves, nor is it settled by a court order or by automatic renewal with no notice.