Appointments and Terminations
Appointments are required of those producers or business entities who are acting in the capacity of an "agent of the insurer." Electronic notification of appointment/termination will be sent to the business partner submitting the information.
An agent of the insurer is any insurance producer who is compensated directly or indirectly by an insurer and sells, solicits or negotiates any insurance product of that insurer. An agent of the insurer must hold an appointment with that insurer.
An agent of the insured is any insurance producer or person who secures compensation from an insured or insurance customer only and receives no compensation directly or indirectly from an insurer for a transaction with that insured or insurance customer. An agent of the insured is not required to hold an appointment with the insurer with which coverage is placed on behalf of the insured.
An insurer must appoint a producer or business entity as its agent within fifteen (15) days from the date the agency contract is executed, or the first insurance application is submitted to the insurance company by the producer or business entity.
The termination of a producer's final appointment will not terminate that producer's license. The producer may not act as an agent of an insurer until he/she is appointed by that insurer.
Appointments become effective the day they are processed by the division.
All appointments are renewed on an annual basis. The division processes all appointments and terminations through March 31 of each year. Each insurer is provided with a list of all appointed producers along with a billing statement due back to the Division of Insurance by April 30, or appointments will terminate.
New and renewal appointment fees are $10 for resident producers and $20 for non-resident producers.
Appointments may be terminated by electronic appointment termination through the National Associate of Insurance Commissioners (NAIC) Producer Information Network (PIN) or Sircon. Insurers must provide the division with a reason for termination.
Insurers are required to notify the producer within fifteen (15) days of the date a notice of appointment termination is sent to the Division of Insurance.