If an insurance carrier decides to cancel a producer's appointment, which statement is NOT true?

The statement indicating that the Commissioner's approval is always required for an insurance carrier to cancel a producer's appointment is not true. In Alabama, while certain actions may involve the oversight of the insurance commissioner, an insurer generally has the authority to terminate a producer's appointment without needing prior approval from the Commissioner. The cancellation is a decision made by the insurer based on their policies and the specifics of the situation, provided they follow proper protocol.

The other statements correctly reflect regulatory processes related to the cancellation of a producer's appointment. For example, the insurer typically maintains the right to immediately terminate the appointment, especially if there are serious breaches of conduct. Additionally, the producer must be given an opportunity to respond to any allegations against them, which is a fundamental aspect of due process. Furthermore, the Commissioner has the power to revoke a producer's license if there’s evidence warranting such action, supporting a regulatory framework that ensures accountability among producers.