Before getting overwhelmed with the hustle and bustle of the season, Supportive Insurance Services would like to take a moment and say thank you for the opportunity to serve you again this year.

As our client we want you to know how much we appreciate you allowing our team to take care of all your insurance licensing needs. We consider it an honor to work with you and look forward to another great year in 2014.

Supportive Insurance Services is continually humbled by the trust and confidence you have bestowed upon us. We know that you depend on us to meet critical deadlines and to have an adequate understanding of what is required for your business to operate legitimately.  We take these responsibilities seriously and appreciate the confidence you have entrusted in us.

2013 has been a year of exceptional growth and we could not have done it without you. As we go forward into 2014 we are committed to offering you the best possible services and support.

No matter what needs or questions you might have, the Supportive Insurance Services team is here to help. Our number one priority is making sure you have what you need to be successful.

We trust this holiday season is filled with special moments and great memories. Our hope is that you will have the best holiday and happiest New Year ever.

The post Thank You And Happy Holidays from the Supportive Insurance Team appeared first on Supportive Insurance Services.

In February 2000, the National Association of Insurance Commissioners (NAIC) adopted the Producer Licensing Model Act (PLMA).  One key component of this act was the definitions of when a person needed insurance licensing.  According to the model law, “A person shall not sell, solicit or negotiate insurance in this state….unless the person is licensed….”  The law also defined exemptions for insurance licensing.

Who Needs Insurance Licensing

Let’s start with who needs insurance licensing.  If a person is going to “sell”, “solicit” or “negotiate” insurance they must be licensed.  The model law also provided us with definitions of each of these terms.

• “Sell” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company.
• “Solicit” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.
• “Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.

So, if the staff in your agency are performing any acts as described above, insurance licensing is required.  And once he/she has obtained their resident license, they will also need to be licensed in any non-resident states if they will be working with residents in those states.

Who Doesn’t Need Insurance Licensing

Now that we know what acts require insurance licensing, let’s look at when a license isn’t necessary.  Fortunately, the PLMA also outlines exemptions for insurance licensing.  A license isn’t required of the following:

• An officer, director or employee of an insurer or of an insurance producer, provided that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and:
  • The officer, director or employee’s activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; or
  • The officer, director or employee’s function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
  • The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person’s activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance.
•   A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans; issuing certificates under plans or otherwise assisting in administering plans; or performs administrative services related to mass marketed property and casualty insurance; where no commission is paid to the person for the service.
• An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director or trustees are engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts.
•  Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance.
• A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, provided that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state.
• A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that that person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state.
• A salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided that the employee does not sell or solicit insurance or receive a commission.

While most states have adopted provisions from the PLMA, not all states use the exact language from the model act.  If you have state specific questions, we would suggest you contact an attorney.

For general insurance licensing questions, feel free to contact Supportive Insurance Services.

The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney for questions regarding the legal ramifications of this information.

The post Who in my Agency Needs Insurance Licensing? appeared first on Supportive Insurance Services.

What is a Certificate of Authority?  Also known as a COA or a foreign qualification, a Certificate of Authority is the process of registering a corporation or LLC with the Secretary of State’s office in a non-resident state.

Why does my agency need a Certificate of Authority when applying for a non-resident agency license?  As a part of the agency license application process, some states require proof of the Certificate of Authority before the state insurance department will issue the agency license.

So I only need Certificates of Authority if the insurance department requires proof?  Not necessarily.  You should check with an attorney or tax advisor to determine whether Certificate of Authorities might still be required for your company even if proof is not required by the state insurance department to issue the agency license.

How do I obtain a Certificate of Authority?  Depending on the state, the application for a Certificate of Authority will either be a paper application or online.  The filing fee can range from $70 to $775 dollars.  Common information requested on the application includes:

• Formal name of company
• Date & state of incorporation
• Names of officers & directors
• Number of shares of stock

The Certificate of Authority application is asking for a Registered Agent.  What is that?  A Registered Agent is the person within the state that will receive service of process documents or other correspondence from the Secretary of State’s office and forwards the documents to the company.  There are many companies who can serve as a Registered Agent.

Is there anything else needed to file for a Certificate of Authority?  Most states require a certificate of good standing from the home state to accompany the application.  Other requirements may include articles of incorporation and the signature of the registered agent.

Still confused? Your insurance licensing can be simplified by the experts at Supportive Insurance Services. Give us a call today to see how we can take insurance licensing off your hands!

The post Certificates of Authority and Insurance Agency Licensing appeared first on Supportive Insurance Services.

A lot of agency owners think as long as they personally hold an insurance license, the agency doesn’t need to hold a license.  It’s a common misconception.  All states offer an agency license, but only a handful make it optional to hold one if doing business in their state.

So now that you know you need an agency license in a non-resident states, let’s discuss the insurance licensing process.  Unfortunately obtaining a non-resident agency license can be much more difficult that obtaining non-resident individual licenses.  Here are a few things you need to know about insurance licensing for agencies…

Certificates of Authority – When filing for the insurance agency license, several states require proof that the agency holds a Certificate of Authority with that state’s Secretary of State’s office.  A copy of the Certificate of Authority must be submitted with the agency license application.

Name approval – A few states require the agency name to be approved by either the Secretary of State or the insurance department prior to application.  In addition, some states have specific guidelines on the words used in the agency name.  For example, one state mandates the name clearly indicates the licensee is an insurance producer.  Other states prohibit certain words from being used in the name of the agency.

Designated Licensed Responsible Producer – Also known as the DRLP, this is the individual responsible for the agency’s compliance with state insurance laws, rules and regulations.  Most states require the DRLP hold the same lines of authority as the agency.  Check out this blog post for more information regarding DLRPs and insurance licensing.

Officers/Owners – The agency will need to list all owners, officers, directors and managers of the agency on the non-resident application.  It is mandatory that social security number, resident address and date of birth be listed for each.

One last thing…most state refer to agencies as business entities.  The terms are used interchangeably in the insurance licensing world.

In the next several weeks, we’ll dive into these topics in more detail, so keep checking our blog for more information regarding insurance licensing for agencies.

The post Insurance Agency Licensing appeared first on Supportive Insurance Services.

The good news is that continuing education for insurance licensing has made great strides in the past several years.  Gone are the days when the only option an agent or adjuster had for CE was to sit in a boring classroom for days at a time.  In today’s world, most states allow all CE hours to be completed via self-study.  Self-study options include textbook courses or online courses.

There are some states which require a certain number of hours in a live classroom setting.  For example, a life/health agent in Texas is required to complete 30 total hours of continuing education every two years.  Of those 30 hours, at least 15 hours must be completed in certified classroom or classroom equivalent courses.  The remaining hours may be completed via self-study.

The majority of states now require 24 hours of continuing education and three of those hours must be in ethics.  Other states requirements can range from 10 – 60 hours per renewal period.

There are hundreds (if not thousands) of continuing education providers for insurance licensing.  We recommend WebCE.  WebCE offers courses for life/health, property/casualty, limited lines, LTC/LTC Partnership and adjusters.  For a 10% discount visit our webpage at http://supportiveis.webce.com and order your CE courses today!

The post Continuing Education for Insurance Licensing appeared first on Supportive Insurance Services.

STATE OF MICHIGAN
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES OFFICE OF INSURANCE LICENSING AND MARKET CONDUCT
In the Matter of:
Designated Responsible Licensed Producer
Bulletin 2013-17-INS
Issued and entered
this 24th day of September 2013 by R. Kevin Clinton Director

This bulletin supersedes Bulletin 2010-01-INS, dated January 7, 2010.

MCL 500.1205(2)(b) requires a producer business entity applicant to identify a designated responsible licensed producer (DRLP) in order to obtain licensure. The DRLP is responsible for the business entity’s compliance with state insurance laws, rules and regulations. Because the DRLP will be held responsible for the activity of the business entity (agency), it is imperative that the DRLP understand the responsibility associated with the designation and that the DRLP has sufficient authority to ensure the business entity’s compliance with the state’s laws, rules and regulations.

Bulletin 2010-0-INS required all licensed and applicant business entities to designate a DRLP. At that time it was required that a DRLP be designated for each line of authority that the business entity held. After review of the statutory requirements, it has been determined that a DRLP is not required to hold all of the same lines as the affiliated business entity.

Effective immediately, the DRLP must hold an active Michigan resident or non-resident producer license, but he/she is not required to hold the same line or lines of authority that the business entity holds. However, the DRLP is responsible for agency compliance regardless of the line of authority. An agency may designate one or multiple DRLPs.

When the Department of Insurance and Financial Services (DIFS) finds that an agency no longer has an active DRLP, the business entity will be sent a Notice of Opportunity to Show Compliance (NOSC) advising it has 14 calendar days within which to cure the situation by designating a replacement DRLP or by showing it has been in continuous compliance.

A DRLP may be designated by submitting to DIFS the Insurance Business Entity Affiliate Disclosure, FIS-0200 form. The FIS-0200 is located at www.michigan.gov/difs under Forms. After the designation of a replacement DRLP is received by DIFS, the business entity and the new DRLP will be notified of the recording of the new designation and an updated license will be generated and mailed to the business entity identifying the current DRLP(s).
If the business entity does not respond to the NOSC within 14 calendar days, DIFS will pursue further compliance action which may include a fine and revocation of the agency license.

Any questions regarding this bulletin should be directed to:

Department of Insurance and Financial Services Office of Licensing and Market Conduct Insurance Licensing Section
611 West Ottawa Street
P.O. Box 30220
Lansing, MI 48909-7720
Toll Free: (877) 999-6442

For more information call 317.257.5734 or email Jeff about how our insurance licensing team can save you time and money.

The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney for questions regarding the legal ramifications of this information.

The post Michigan Insurance Update – 10/01/13 appeared first on Supportive Insurance Services.

With the recent cut-backs in insurance department operating budgets, the majority of states no longer mail paper license copies.  In order to obtain a copy of a new or renewal license, the licensee must go online and print the license copy themselves. Depending on the particular state, license copies can be obtained through various sources:

• On the state website
• Through State Based Systems (SBS)
• Via Sircon

Let’s take a moment to review the process to obtain license copies for insurance licensing in a few states:

Arkansas – Once your resident or non-resident insurance license has been issue in Arkansas, the state will mail you a paper copy of the license. If you need a duplicate copy at a later date, you will need to call or email the Arkansas Insurance Department and they will mail you the copy at no charge.

Colorado – The Division of Insurance does not mail out paper license copies for initial or renewal producer insurance licenses.  The licensee must go to Sircon (the state’s licensing vendor) to print a copy of his/her license. If the license copy isn’t requested within 30 days of renewal, or if you didn’t renew via Sircon, there is a $5 fee.

Massachusetts – The Massachusetts Division of Insurance does mail out license copies. However, if you need a duplicate or replacement license, you need to complete the Replacement License Request form and mail it to the state along with a fee of $25.

North Dakota – License copies are not mailed by the North Dakota Insurance Department. The licensee must go to State Based Systems (SBS) to print a license copy. You are allowed one free print of your new or renewal license.  Additional copies may be requested for $5.95.

Still confused? Your insurance licensing can be simplified by the experts at Supportive Insurance Services.  Give us a call today to see how we can take insurance licensing off your hands!

The post License Copies for Insurance Licensing appeared first on Supportive Insurance Services.

Let’s learn a little bit more about Kelly…

What is your all-time favorite movie?  Gone with the Wind.  I couldn’t even tell you how many times I’ve seen it!

What type of music do you like to listen to?  I like it all…from Conway Twitty to Bob Seger to Aerosmith.

Any favorite sports teams?  I’m a St. Louis Cardinal & Pittsburg Steeler fan.  I believe I’m the only one in the office who isn’t a Colts fan, but the boss still lets me in the door!!

When you were little, what did you want to be when you grew up?  A cashier at Kmart.  I was somewhat able to fulfill that dream as a cashier at the local grocery store in high school.

What’s your most memorable moment?  That a hard one because I have several, but I’m going with the day I married my best friend and soul mate of 22 years, Sean. 

What is your most embarrassing moment?  The summer between my 7^th and 8^th grade year I decided to go ‘blonde’…Sun-In plus dark brown hair = orange hair and I had to start my 8^th grade year with this clown hair!!  Needless to say, I have NEVER lightened my hair myself again!!

What is your favorite thing about working at Supportive?  The flexibility I have!  With kids it is so nice to be able to adjust my schedule as needed!  Everyone here gets along and is like a second family.

Anything else we should know about you?  I was born and raised on a farm so I’m pretty much a redneck county girl. I much rather sit around a fire with friends and kids playing in the yard than just about anything else. 

The post Supportive Insurance Services Employee Spotlight – Kelly Potts appeared first on Supportive Insurance Services.

To start, review the states where your firm is adjusting claims and check with the state insurance department to see if an adjuster license is needed for the firm.  If you determine a firm license is required, applying for the adjuster license can be complicated.

Let’s look at one state’s requirements for adjuster firm licensing – California.  California requires independent adjuster firms (known in California as organization) to be licensed.  Prior to applying for an adjuster license the firm must have been issued a Certificate of Authority (COA) with the California Secretary of State’s office.

Once the COA has been issued, the firm must complete an application and pay the $267 licensing fee.  Before this application can be submitted to the Deptartment of Insurance, an individual known as the firm’s Qualified Manager, must have successfully passed the California adjuster examination and have been fingerprinted.  If this requirement is in place, the firm application along with a personal identification form for the Qualified Manager, including a list all persons authorized to negotiate claim settlements in the state of California, may be submitted. Personal identification forms must also be submitted in behalf of all officers, directors and stockholders of the firm.  In addition, a photo ID must be attached to each personal identification form.   California also requires a bond be submitted with the adjuster license application.  If any officer, member, controlling person, partner, director or shareholder has been the subject of a disciplinary action or convicted of a crime, documentation must be submitted with this application.

Keep in mind not all adjuster licenses for firms are as complicated as in California.  However, some states require bonds and many require COAs to be in place when submitting the firm license application.

The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney for questions regarding the legal ramifications of this information.

The post Do I Really Need An Adjuster License For My Firm? appeared first on Supportive Insurance Services.

A few things you need to know about surplus lines licensing:

• A surplus lines license is needed for both the surplus lines broker and agency in all states where you intend to write business.

• A majority of states also require a property and casualty license in addition to the surplus lines license.

• Most states require the surplus lines broker to pass a test before a resident surplus lines insurance license will be issued.

• At least one state requires a non-resident surplus lines applicant to test.

If you and your agency are expanding into the surplus lines market, your surplus lines insurance licenses need to be in place. Give Supportive Insurance Services a call and leave the worry of the surplus lines insurance licensing to the experts!

The post Is Surplus Lines Insurance Licensing Puzzling? appeared first on Supportive Insurance Services.