If there’s one good thing about the process of keeping licensed producers in compliance with state department of insurance regulations, it’s that license and appointment renewals occur on a predictable schedule. This makes planning for appointment renewals routine, and if it wasn’t a process that had to be repeated across multiple states for multiple lines of authority (LOAs) for all agents you contract with, it would be a cinch.
Instead, maintaining the full picture of your producers’ license compliance factors in:
- Multiple producers
- Which states they are licensed in and their specific requirements
- Continuing education requirements for their state of residence
- License renewal timelines
- Regulatory actions that may result in terminations, as well as typical licensure lapses
- Relevant changes to state requirements via legislative or judicial actions
- Changes to an agent’s name, address, or other basic information
For all involved, producer compliance maintenance consists of filling out applications, paying fees, and keeping tabs on information flowing from every different direction.
The most accurate, efficient, and effective way to manage producer license renewals, appointment renewals, and even terminations is by implementing the right technology for the job. A producer compliance management system should be equipped to track every piece of applicable data about each producer and agency
It’s not enough to simply collect this information a single time, or even on an annual basis. A best-in-class producer licensing management system will also predict issues before they arise. And, by communicating directly with state departments of insurance and other regulatory bodies, the ideal system will eliminate duplicate entries and delays in the flow of information.
You can check an agent’s licensure status through each state individually, or through NIPR, or in bulk via a license lookup in any software that integrates with those systems.
Because NIPR talks to other state systems, their information is always up-to-date, and factors in the numerous regulations specific to each state and region. Additionally, if a state can’t find your producer’s license, NIPR’s audit log can provide a source of validation.
CE requirements vary by resident state and line of insurance. In most states, as long as an agent is up to date on the CE requirements of their resident state, it’s considered reciprocal to nonresident states where they may be licensed. There are, however, notable exceptions, such as for adjusters (New York and California do not accept any reciprocal state CE credits).