A. A valid appointment of an agent shall authorize the agent to act for the insurer during the time for which the appointing insurer is licensed to do business in the Commonwealth, unless such appointment is otherwise terminated, suspended, or revoked. No later than 10 calendar days after notice of the termination, suspension, or revocation of an appointment has been sent to the agent or agency, the agent or agency shall immediately cease selling or soliciting on behalf of such insurer.
B. Except as provided in § 38.2-1834.1, upon the termination of the appointment of an agent by an insurer, the insurer shall notify the agent of such termination within five calendar days and promptly notify the Commission in a manner acceptable to the Commission.
C. An appointment of an agent holding a restricted or limited license shall authorize such agent to sell, solicit, or negotiate only those classes of insurance specifically included in such agent’s license authority.
D. Each insurer shall remit in a manner and amount prescribed by the Commission a renewal appointment fee for each appointment, unless a notice of appointment termination was received by the Commission on or before the preceding June 30, that shall be paid directly into the state treasury and credited to the fund for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2-400.
E. The prescribed appointment fee shall not be less than $7 nor more than $25.
F. Upon the failure of the insurer to pay amounts due for appointments by the date set by the Commission:
1. The insurer may be subject to a penalty pursuant to § 38.2-218; and
2. The Commission may, after the insurer has been given due notice and an opportunity to pay the amount due, administratively terminate the appointment of each agent on whose behalf the appointment renewal fee, including any penalty imposed pursuant to this section, was not received by the Commission by the date due.
G. An agent whose appointment by an insurer has been terminated by the insurer is prohibited from selling or soliciting applications or policies on behalf of that insurer unless and until reappointed by the insurer. Any such selling or solicitation on behalf of that insurer after such appointment termination shall constitute a violation of this section and shall subject the agent to penalties as prescribed in §§ 38.2-218 and 38.2-1831.