Montana State Life Insurance Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is that a disapproved appointment becomes voided on the date the department provides notification to the insurer. This means that once the insurance department officially notifies the insurer of the disapproval, the appointment is effectively invalidated from that specific date. It ensures clarity in the regulatory process, allowing insurers to promptly respond to changes in their appointments and maintain compliance with state regulations.

In this context, the disapproval notification serves as the official notice from the regulating body, and without such notification, the status of the appointment remains unresolved. This procedural step helps uphold accountability within the insurance industry, ensuring that all parties are informed of the current standing of appointments.

The other options misinterpret the timing of when a disapproved appointment becomes voided. For example, stating that it becomes voided after a certain number of days or immediately upon disapproval does not align with the requirement of receiving formal notification from the department, which is essential for accuracy and notification. The end of the policy term does not relate to the appointment status but more broadly to the life of the insurance contract itself.