Final answer:
The policy owner may terminate an agent's appointment, which can be voluntary or involuntary, and must follow protocols outlined in the agency contract or by law.
Step-by-step explanation:
An agency relationship in insurance is a legal arrangement where the agent acts on behalf of the policy owner. Both the agent and the insurer have the ability to influence the continuance of this relationship, but the ultimate right to terminate the agent's appointment typically lies with the policy owner. Such a right is often executed in accordance with the terms specified within the agency contract or when the services of the agent are no longer required or satisfactory.
The termination can be voluntary, where the policy owner decides to end the relationship, or involuntary, which may involve breach of contract, non-performance, or other legal grounds that justify the termination of the agent's services. In some cases, the termination process must adhere to certain protocols to ensure that all parties are protected, including possible notification periods or other regulatory requirements specified by law or the policy contract.