Here you’ll find a glossary of key terms and definitions.



There are 21 states that require the agency to file an affiliation for either the DRLP only or in some states for every agent selling insurance products in their state under an agreement with the agency. All but three states use the term “affiliation” for this relationship between the agency and a contracted agent while FL and TX label them a “designation” or “appointment” and CA labels them an “endorsement.”


Captive/Exclusive Agencies

A captive or exclusive insurance agency works for and sells for one carrier only. A captive agency receives support from their associated carrier through advertising, location, and referrals but a captive agency is limited in what policies and products the agents can sell.


A co-code, also known as a company code, is a five-digit number assigned to all insurance companies by the NAIC for filing financial data. Carrier appointments include the co-code of the specific carrier that the individual/firm is appointed within the state.

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Consumer Glossary

This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time. The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references.


Designated Home State

If an adjuster lives in a “non-licensing state,” meaning that their resident state doesn’t license adjusters, they can choose a designated home state to serve as their resident state. All adjusters with a designated home state are required to complete the pre-licensing and educational requirements of their selected home state.

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Adjuster Licensing, Reciprocity and the Designated Home State

For producers holding the major lines of authority, choosing a home (or resident) state is straightforward. It’s the state or American territory where an individual maintains his or her home or an entity maintains its principal place of business. When it comes to adjuster licensing, though, it’s not quite as straightforward.

Detail Report

The detail report allows a user to view all information for a single producer, company, or agency, such as demographic information (name, address), license information (states licensed, license number, status, and lines of authority), appointment information (company appointments, effective date, termination date, and termination reason) and any reported regulatory actions. The detail report can be requested with the data being returned as an XML which allows the data to be compatible with all computer networks, data structures, and operating systems.


A designated responsible license producer (DRLP) is a producer assigned by a business entity to ensure compliance with the laws and regulations of the state. While each state’s policies differ around DRLPs, most states allow for more than one DRLP, and the DRLP must hold all lines of authority that the business entity they represent hold. Some states refer to the DRLP as Designated Responsible Person.

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What you should know about a Designated Responsible Licensed Producer (DRLP) – Supportive Insurance Services | Insurance Licensing Experts

When speaking with our clients regarding insurance licensing, we find there is confusion regarding a Designated Responsible Licensed Producer. We thought it would be helpful to explain what a Designated Responsible Licensed Producer is and how it relates to the insurance licensing process.



An acronym for Federal Employer Identification Number, the FEIN is a 9-digit number assigned by the Internal Revenue Service (IRS) to identify a business operating in the US for tax purposes. All companies that have employees, are structured as a corporation or partnership, or file certain tax returns for small businesses must have a FEIN.

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What is an FEIN? | What It Is and Who Needs to Get an FEIN

Running a business means meeting a lot of government requirements and following a number of laws. One of the first things to do when starting your business is apply for an FEIN. But, what is an FEIN? And, do you have to have one? Keep reading to learn the answers to these questions and more.


Inactive Licenses

Can indicate a license that has lapsed due to failure to renew on time or failure to have an active appointment or affiliation (in states that require it) but can also be a license that the state has rescinded due to some regulatory action.

Independent Agencies

An independent agency is able to contract agents underneath them to sell the products of multiple insurance carriers.

Insurance Agency

An insurance agency is an individual or company made of agents who solicit and sell insurance on behalf of one or more carriers. There are two types of insurance agencies: captive/exclusive agencies who sell policies from one insurance carrier and independent agencies who sell policies and products from multiple insurance carriers.

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Insurance Adjuster

An individual who evaluates coverage and determines the amount of loss suffered. Generally, there are three types of adjuster licenses: company (or staff), independent, and public.

Insurance Carrier

An insurance carrier is the company that provides the insurance coverage. While many individuals go to an agency to purchase insurance, it’s the insurance carriers that hire underwriters, handle insurance claims, and issue payments. An individual or firm must be both licensed by the state and appointed in the state by any insurance carrier whose products they want to sell.

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What Is an Insurance Carrier?

“Insurance carrier” is just another term for an insurance company. Although you most often speak with your agent, it’s your carrier that underwrites your policy and issues payments for your claims. Alternate names: Insurance company or insurance provider While you may have a great rapport with your insurance agent, what if you need to file a claim?

Insurance Core Lines

Core lines refers to the so-called “core” limited lines of authority:

  • Car Rental
  • Credit
  • Crop
  • Travel

Insurance Producer

An individual or firm that is licensed to sell the typical lines of insurance in a state. Sometimes also referred to as an Agent/Agency.


Just-in-Time Appointments

In those states that permit JIT appointments, carriers may wait to file the appointment until after the first piece of business is generated by a new producer. The appointment request must then be submitted to the state insurance department (DOI) within a specified period of time.


Line of Authority (LOA)

A line of authority (LOA) is a general area of insurance where producers can be authorized to do business.


Major Lines

The NAIC’s Producer Licensing Model Act (PLMA) defines the six major lines of authority for insurance as follows:

  • Life
  • Accident and Health or Sickness
  • Property
  • Casualty
  • Variable Life and Variable Annuity
  • Personal Lines

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A Managing General Agent (MGA) is a type of wholesale broker that sits between a licensed agency/agent and the insurer in the Insurance Distribution Channel. MGAs, like most wholesale brokers, recruit agencies and agents to sell the insurance products of one or more insurance carriers. This includes assisting the agency/agent with obtaining the required licenses. However, unlike a typical agency that would perform these services, an MGA also takes on some of a carrier’s responsibilities such as binding coverage, underwriting and pricing, settling claims, and appointing retail agents in a certain region.



The National Association of Insurance Commissioners (NAIC) is the U.S. regulatory support association governed by insurance regulators from the 50 states, the District of Columbia, and 5 U.S. territories. Through NAIC, state regulators establish standards and best practices, conduct peer review, and coordinate regulatory oversight. NIPR partners closely with NAIC as an independent non-profit affiliate.

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Member Connectivity Training, Expertise, and Technology Data and Analytics Consumer Education, Outreach, and Advocacy Committee Governance and Management NAIC Operations Learn More


The National Insurance Producer Registry (NIPR) is a non-profit partnership with the National Association of Insurance Commissioners (NAIC) to streamline licensing data and compliance services for insurance professionals. NIPR serves as a centralized resource of producer licensing information for all 50 states, D.C., and U.S. territories, as well as an electronic communication network to apply for licenses, appointments, and terminations.

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National Insurance Producer Registry (NIPR)

Overview: The National Insurance Producer Registry (NIPR) was established in October 1996 as an independent non-profit affiliate of the NAIC. The NIPR is a unique public-private partnership that supports the work of the states and the NAIC in making the producer-licensing process more cost-effective, streamlined and uniform for the benefit of regulators, the insurance industry and the consumers they protect and serve.


An NPN (National Producer Number) is a unique identifier assigned to producers through the NAIC (National Association of Insurance Commissioners). The NPN is the primary tracker of insurance-related activities for both agents and entities.

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PDB (Producer Database)

The Producer Database (PDB) is the single source of truth for producer licensing information from participating state insurance departments. Currently, all 50 states, Washington D.C., Guam, Puerto Rico, and the Virgin Islands, are included on the PDB. The PDB contains and regularly updates agent demographic information, updated license information, appointment information, and reported regulatory information. *Not every state posts everything to PDB.

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Producer Database (PDB)

The Producer Database (PDB) is a central repository of producer licensing information updated on a timely basis by participating state insurance departments. Currently, the PDB includes information from all 50 states, as well as the District of Columbia, Guam, Puerto Rico and Virgin Islands.

Personal Lines of Insurance

Personal lines of insurance protect individuals against the financial losses that result from various personal risks. Examples of personal insurance coverage include protection from financial risk related to death, injury, or property loss.

For more information:

Personal Lines Insurance: Definition, How It Works, and Coverage

Personal lines insurance refers to any kind of insurance that covers individuals against loss that results from death, injury, or loss of property. These insurance lines generally protect people and their families from losses they couldn’t afford to cover on their own.


Registry Appointment

A term coined by AgentSync to identify appointments in states that don’t require or accept appointment transactions but do require the carrier to track all agents selling on behalf of the carrier in their state and be prepared to send that list upon request from the state.

Reinstatement Period

A reinstatement period is a grace period for an agent whose license has lapsed due to failure to renew or meet continuing education requirements. If the agent meets the criteria to renew during the reinstatement time frame, the agent can apply to reinstate their license. State rules vary greatly based on the renewal period time frame and what requirements are.

Retaliatory Fee

A state’s insurance department may impose a fee upon insurance professionals in another state to match what that state charges its residents for licenses. This is called a retaliatory fee (a higher or additional fee).

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