Regulatory Roundup: California Surplus Brokers, Louisiana P&C Market, Michigan DRLPs

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

California: Who needs a license for surplus lines sales?

Although California’s current producer and broker licensing laws have been in place since 2008, the California Surplus Lines Association (SLA) noted they frequently get questions and complaints from people who are confused about who needs a license for the business. To clear up confusion as the laws reach their second decade, SLA officials issued Bulletin No. 1498.

So, to the confused: If the end client’s home state is California, then both the business entity and the employee involved in soliciting, negotiating, or “effecting” insurance business between the insured and a nonadmitted carrier must have a surplus lines broker license in California. The bulletin goes on to tell brokers and agents how very streamlined the process is to get a California surplus broker license, especially if they’re all up-to-date on their own resident state’s surplus broker license.

But, in case you forgot that out-of-compliance insurance sales are, like, illegal or whatever, the bulletin also lists the potential penalties for getting “creative” with how you should be licensed to sell to California home staters.

Louisiana Commissioner sees early signs of P&C market improvement

Louisiana Commissioner Tim Temple issued a news release saying that spring has sprung in the state’s P&C market, with 10 new P&C insurers joining the market since the beginning of the 2024 legislative session. 

Temple said it’s also a positive sign that carriers have submitted fewer rate change requests, and the carriers that filed rate requests in the last several months are generally asking for much lower rate changes. In fact, the release notes some carriers have filed to lower rates for some policies. 

As an example, in 2024, carriers filed an average homeowner insurance premium rate increase of 6 percent. In 2023, that average was 14 percent, and in 2022 it was 16 percent.

Michigan revokes agency licenses for failure to report DRLPs

The state also went on a revocation spree, on March 7, 2025, the state revoked nine business entities’ licenses for failure to keep a licensed producer on file as their designated responsible licensed producer (DRLP) with the state.

A business entity, aka agency, that has producers writing business under its umbrella has got to report a DRLP to the state.

Regardless of how many people are employed in your operations division, no matter how many compliance team members have juris doctorates, your DRLP is always going to be the one responsible for compliance for your business overall and for every downstream producer. So, if you want to keep your DRLP up to date and make it easy for them to stay in compliance without losing sleep over how many producers forgot a license renewal, help them out and check out AgentSync Manage.

Other state regulatory changes

Alabama Commissioner of Insurance Mark Fowler issued Bulletin 2025-01 to instate a “temporary” moratorium on captive insurers and risk retention groups trying to get a license or register their businesses in the state. The commissioner doesn’t give a reason why, and the bulletin said the moratorium may last six months. Or less. Or more.

Alaska is going to allow businesses to submit their designated responsible licensed producer (DRLP) changes through NIPR. We love to see it!

Arkansas Bulletin No 3-2025 opens the state’s renewal period––renewals are open June 1 through 30, 2025. Terminations are due before May 24.

California has updated its list of approved surplus lines insurers in the state, adding Fireman’s Fund Indemnity Corporation.

Hawaii is joining the states that allow business entities to submit their DRLP changes through NIPR. 

Louisiana Commissioner Tim Temple issued a news release accusing a prominent P&C carrier of overcharging its policyholders for the company’s share of the Louisiana Citizens Property Insurance Corporation Emergency Assessment. Over the past four years, the state alleges the carrier has overcharged about 138,000 policyholders by about $4 million.

Maryland has taken action against an insurer it alleges broke state laws and discriminated against underserved consumers in urban areas.

Michigan fined a producer $12,000 and ordered a cease-and-desist order after he was found to have gotten several of his customers low premiums on their open enrollment Marketplace Health Insurance plans by substantially underreporting their income. We applaud thrift and innovation, but full-on insurance fraud is a big fat NO.

Nebraska carrier appointment renewals are due April 25, 2025. Nebraska carrier appointment renewal invoice payments open May 1 to July 31, 2025. Nebraska has a punitive retaliatory fee setup for appointment invoices, so feel free to check ahead for your total bill.

New York has filed a lawsuit against a prominent P&C carrier, saying the carrier used online quoting systems that made driver data more or less available for the taking to hackers. Want a partner that won’t expose your data and make you the subject of a lawsuit? Make sure you’re up on your third-party security.

North Dakota appointment renewals are due April 30. For more on producer appointment renewals and deadlines, check out our rolling calendar of state renewal periods.

Oklahoma added three states to its list of states it accepts as the “designated home state” to establish reciprocity for non-resident adjuster licensees. The full list is now: Alabama, Arkansas, Florida, Idaho, Indiana, Kentucky, Louisiana, Minnesota, Mississippi, Montana, New Hampshire, North Carolina, Texas, Utah, Washington, West Virginia, and Wyoming. (Mississippi, Washington, and West Virginia, welcome to the pack!)

South Dakota Division of Insurance Director Larry Deiter issued Bulletin 25-01 to give health insurance carriers and producers clarity about “enhanced direct enrollment entities,” aka EDEs. The state guidance is that entities that directly enroll consumers in health insurance must have a third-party administrator license and an insurance producer license, and must be appointed by the carrier or have a federal “navigator” certification.

Virginia announced the state’s changed its pre-licensing courses, so CE providers, take note.

Washington interviewed a state volunteer about his experiences helping consumers navigate Medicare decisions on the OIC Answers podcast.

SILA announced its February 2025 SILA Associate (SILA-A) Designation Recipients. Congratulations to Alexis Archer, Jackie Brady, Brandi Causey, Leticia Fletcher, Jenna Laughlin, Cain Pettit, and Dina Weingart!

Stay on top of regulatory changes with AgentSync

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.