What is the consequence of a licensee failing to maintain an appointment with an insurance company within 48 months?

The consequence of a licensee failing to maintain an appointment with an insurance company within a 48-month period is the expiration of the license. This means that the individual will no longer be authorized to engage in insurance transactions for that specific company, making their ability to operate as an insurance agent or broker effectively null with respect to that carrier.

Licenses are granted with an expectation that the licensee will remain actively engaged with an appointed insurer. If this relationship is not maintained, it signals a lack of engagement or commitment to the insurance practice area, which the regulatory body views as a breach of professional conduct or standards. The expiration ensures that all licensed individuals are effectively connected to the insurance companies they represent, maintaining a higher standard of accountability and reliability in the insurance marketplace.

In this context, it is crucial for licensees to consistently engage with the companies and renew their appointments in order to retain their operational licenses, ensuring they can continue serving clients and meeting regulatory requirements.