What action must partners take if one of them dies, according to partnership rules?

In the context of a partnership, if one of the partners dies, the appropriate action for the remaining partners to take is to refer to the partnership agreement. Typically, many partnership agreements outline procedures for such situations. If the agreement allows for it, the remaining partners can continue the business.

The option regarding notifying the Insurance Commissioner is less relevant in the context of typical partnership rules, as this requirement does not generally apply to the internal workings of most partnerships. Similarly, relicensing as a partnership is not a standard procedure triggered by the death of a partner unless specific local laws or the partnership agreement explicitly state otherwise.

Thus, the option of continuing the business with the terms stated in the partnership agreement is often the most relevant response to the situation.