When a surety insurer terminates the appointment of a surety agent, who must be notified immediately?

• A. The Governor and the Insurance Commissioner
• B. The Insurance Commissioner only
• C. The Insurance Commissioner and the Chief Clerk of the District Court of Maryland
• D. The Chief Clerk of the District Court of Maryland only

Answer: (C)

When a surety insurer ends the appointment of a surety agent, both regulatory oversight and court-recorded authority must be updated right away. The Insurance Commissioner needs immediate notice so the state can cancel the agent’s appointment in the official records and prevent any future issuance of bonds or related activities by someone no longer authorized. At the same time, the Chief Clerk of the District Court of Maryland must be informed so the court’s records reflect that the agent is no longer authorized to act on behalf of that insurer; this helps the court avoid accepting bonds or handling matters with an agent who is no longer appointed.

That’s why both parties must be notified. The Governor is not directly involved in this process, and notifying only one entity would leave either regulatory or court records out of date.