Final answer:
The insured individual must notify the agent when an insurance appointment is terminated. State insurance regulators oversee industry practices, but direct communication between the insurer and the insured is crucial for managing insurance policies.
Step-by-step explanation:
When an insurance appointment with an agent is terminated, it is the responsibility of the insured individual to notify the agent of the termination. The government regulation of insurance at the state level oversees the conduct and obligations of both insurance providers and the insured parties. The notification process is essential for maintaining clear communication and ensuring that all parties are aware of the status of the insurance policy.
State insurance departments oversee the industry to facilitate low insurance prices and promote accessibility, but the direct relationship between the insured and the insurer demands that any changes, including termination of appointments, are communicated effectively to avoid confusion or lapses in coverage. This is because the relationship between the agent and the insured individual is a contract between two parties, and it is the responsibility of the insured individual to terminate the agreement.