LicenseLogix Optimizes Insurance Agency Licensing
Licensure of insurance companies has long been an established part of the insurance regulatory system. States typically require companies selling insurance within their borders to obtain a license from that state with different licenses required often for different lines of insurance. Such licensure provides a mechanism for insurance regulators with an eye towards consumer protection to enforce standards of conduct. Insurance licensure also funnels revenue to the states while in turn adding complexity to the insurance regulatory system. Regulation of the insurance industry has led to significant variability in licensing requirements across the country.
Because insurance agencies must obtain a license in every state in which they plan to operate, license compliance for companies operating across the country often becomes a burdensome undertaking. Separate licenses may be required, depending on the types of insurance being sold. Lines of authority include, but are not limited to, life, health, property and casualty, travel, and title. The process of obtaining an agency license generally includes an application, supporting documentation, and a fee. Renewals are also required annually, biennially, or triennially. LicenseLogix addresses the specific needs of your business to ensure you are informed about which license type(s) you need and how to obtain the license. We streamline the process so that you can focus on your business and feel confident that are you in full compliance.
Insurance Producer Licensure:
States typically require insurance producers operating within their borders to obtain a license from that state with different licenses required for different lines of insurance. Aspects of insurance producer licensing include specific education or knowledge requirements, such as passage of a written exam prior to licensing and continuing education thereafter. Insurance professionals may also be subject to fingerprinting for extensive criminal background checks. LicenseLogix’s licensing professionals have knowledge of the licensing requirements, reciprocity standards, and examination procedures applicable to insurance producers in all 50 states.
Penalties for Non-Compliance:
Common penalties for noncompliance include blocked commissions and large fines, ranging from a couple hundred to a couple hundred thousand dollars. A state may also suspend or revoke a future insurance license. Some states will issue an order of Cease and Desist from engaging in the business of insurance in that state. States may also have the unlicensed insurance agency pay all valid unpaid claims of their customers. Compliance is critical in this industry for long-term financial success.
Industry Specific Knowledge:
LicenseLogix has developed a comprehensive knowledge database on licensure requirements. Our knowledge spans from:
• Initial Licensure for both agencies and producers
• Lines of Authority
• Processes to update the board during critical changes to corporate structure (ownership changes, mergers & acquisitions, officer removal & additions, address change, name change, EIN change)
• Continuing Education
Not every licensing scenario is black and white. LicenseLogix has tools to offer our insurance clients customized research to solve any complex licensing matter. LicenseLogix has worked with a diverse range of clients within the insurance industry to help them address unique research questions to achieve maximum compliance.
Examples of Our Client-Centered Work in the Industry
Our clients span from individual insurance producers to nationwide insurance brokerages. LicenseLogix manages the complex and dynamic license portfolio for a nationwide insurance industry giant. As part of our client service, we have created a customized license compliance program on behalf of the client that includes:
• Management of all aspects of licensing: initial filings, renewals, license closures, license updates, addition/subtraction of lines of authority, submission of annual reports;
• Nationwide State Registration of Assumed Names with Secretary of State and Department of Insurance;
• Nationwide foreign qualification with Secretary of State;
• License renewals for all agent/employees of the company; and
• Customization of Client License Information Center (CLiC) Accounts housing 3000 company and agent industry licenses and 16 distinct and operational entities. Creation of the CLiC interface allows this national client access to a user-friendly portal to keep track of all of its company and employee licenses while automating renewals and streamlining the client’s new license applications. Real time licensing Information is available to the client on items such as critical deadlines, renewal fees, and filing statuses, while relevant corporate documents are easily accessible and downloadable to our client.
Our insurance industry clients save hundreds of hours and thousands of dollars each year using CLiC as their secure, web-based tool to outsource their renewal filings and manage their license portfolio. CLiC removes the need to manage all licenses and crucial compliance dates in a spreadsheet, prevents missed filing deadlines, and protects corporate data. Ask a LicenseLogix licensing expert how we can help streamline your insurance company!