Termination for cause notification

[d and m]

My cousin was employed at an insurance agency in upstate NY and was laid off from the agency owner
3 months ago. He recently received notification from insurance dept. regarding his termination. He notified the dept. and they told him his appointment was terminated for cause. He did not have any knowledge of this. The insurer never sent out notification to him regarding this termination. Isn't it required by law for the insurer to notify an agent if he is terminated for cause??

 

[Life Hawk]

My cousin was employed at an insurance agency in upstate NY and was laid off from the agency owner
3 months ago. He recently received notification from insurance dept. regarding his termination. He notified the dept. and they told him his appointment was terminated for cause. He did not have any knowledge of this. The insurer never sent out notification to him regarding this termination. Isn't it required by law for the insurer to notify an agent if he is terminated for cause??

He needs to contact the state and request information from them... what was the cause?

 

[d and m]

Thank you for your reply. He did contact an examiner from the state a
few weeks ago. They did e-mail him back that he was terminated for cause a few months ago. He asked for what reason. He mentioned that
he never received any written notification for this. To date the examiner
has not replied. As far as the cause, he has an idea of what it could be.
Late last year the agency where he was employed was audited by the company for running too many underwriting reports on auto quotes. He was questioned by auditing as to why he was running too many reports.
He has had no communication with the company since. A few months ago the agency owner let him go due to the pandemic. We have a feeling the agency owner knew about the termination from the company and used the pandemic as an excuse to avoid confrontation. The next thing he knew is that he received a letter from the state asking him to describe the details that led up to the termination.

I looked online and checked with the insurance laws in NYS
regarding appointment terminations for cause. It states when an insurer
notifies the state of this termination for cause, it must send a copy
of this termination to the producer within 15 days by certified mail , return receipt. He has not received any written notification at all from the insurer regarding this termination. The only notice he received was from the state. It looks like to me the insurer violated insurance law by failing to notify him of this termination for cause. I advised him to maybe file a complaint to the state that he was never notified of this.

He is very concerned about this. Any thoughts about how he should handle this?

 

[fed up]

Sounds like he was trying to offer correct rates to the people he contacted since all quotes are a guestimate until reports are run and that the agency owner decided to blame his troubles on a scapegoat. If he did not follow guidelines and ask the customer for permission to run the reports or failed to write enough business to cover the charge to the agency for each MVR run, then he could be considered to have given cause to the agency to terminate himself. I used to get dozens of leads each week and was told by an agency owner to run all reports before I contacted the person so that there was never a difference in the price quoted and the premium charged. He later tried to use this as a reason to deny unemployment benefits to me.