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Home / Insurance / Fines for Producer License Violations in Georgia, California Adopt NAIC Producer Legislation, Utah DOI Changes Address

Fines for Producer License Violations in Georgia, California Adopt NAIC Producer Legislation, Utah DOI Changes Address



This post is part of a series sponsored by AgentSync.

Variations in laws, compliance protocols, industry transparency and general regulatory cultures can give the impression that keeping up with changes in the industry is a bit like herding cats. So, what better way to argue about some of the more localized insurance news than in a regulatory summary?

On an ongoing basis, in no particular order or rank, we wrestle with the various regulatory changes, compliance measures and commissioner decisions in our summary. As a disclaimer: A lot is happening at any given time in these US states, so this is not a comprehensive picture of government-level action in any way. Think of it as an example of regulation.

Regulatory Roundup

Georgia’s commissioner issues new fines for producer license violations

Georgia’s Commissioner of Insurance and Safety Fire issued a statement in March warning the industry that there has been an increase in people selling insurance first and then getting their license afterwards. (As a side note: Just-in-Time appointments are a real thing. Just-in-Time licensing is not!) In response, Commissioner John F. King has issued a new fine plan for producers, with fines increasing per infringement :

Violation, good

  • First Policy, $ 100
  • Second policy, $ 500
  • Third insurance, $ 1,000
  • Fourth Policy, $ 1,500
  • Fifth policy, $ 2,000
  • Sixth + policy (s), $ 5,000 each

Geez, you do not wish it was easy to know if your insurance manufacturers always sell within their licenses? IF THERE IS ONLY SOME WAY TO KNOW! (This is a joke, really, if you do not already know how to make sure your people follow the rules, please, please, check out our demos.)

Indiana requires fully digital premium and surplus tax

In 2011, the Indiana Department of Insurance moved to the National Association of Insurance Commissioners (NAIC) systems for premium tax filing and insurance renewal fees (OPTins). For the past 11 years, however, they have allowed paper applications for premium taxes, insurance companies’ annual renewal fees and surplus taxes. As of April 1, 2022, the department is finished with paperwork and will only accept online applications for premium taxes, surplus taxes and insurance companies’ annual renewal fees through the OPTins system, item. According to the state bulletin, all companies applying for an exemption must apply for an individual examination.

We do not handle applications for premium tax, but for the record, we all agree to refrain from paperwork and live the digital life.

Utah announces DOI address change

As previously reported by KSL Media Station, a number of state entities in Utah have moved to Taylorsville after the legislature voted in 2019 to abandon the capital complex in Salt Lake City, Utah. The governing body voted to pay $ 30 million to buy the former American Express campus in Taylorsville, a site that the DOI announced had permanently moved to mid-March 2022.

For those in need of personal assistance, the physical address of the Utah Insurance Department is:

4315 S. 2700 W., Suite 2300
Taylorsville, UT 84129
And the new postal address is:
Utah’s Insurance Department
PO Box 146901
Salt Lake City, UT 84114-6901

Emails have remained the same and the telephone directory is available online.

California adopts full implementation of NAIC PLMA

California has passed full adoption of the NAIC’s Producer Licensing Model Act (PLMA) for its producers. In the past, California had several exceptions that made reciprocity difficult with other PLMA states. While this will provide some degree of consistency for licensing, it will also mean that many license code changes through the National Insurance Producer Registry will have to be endured, as well as an interruption in all NIPR processing for California from May 6 to May 13, 2022.

So if you are processing through NIPR (or through any NIPR-based service like AgentSync), plan your business cycle in May around some downtime.

But after that date, things will go a little smoother for NIPR users doing business in California, in part because they are also starting appointments and terminations for producers of variable lifespan, variable annuities and personal lines.

Virginia renewals based on LOA status dates

As of April 1, 2022, Virginia bases the qualification for a late license renewal or reinstatement based on the Line of Authority (LOA) status date.

If that sounds confusing, it’s because it’s. So if your license is renewed on a specific date, your first LOA will likely have the same date, and any renewals or reinstatements will be based on that date. However, for additional LOAs, which may have a calendar date before or after your regular license renewal date, the renewal or reinstatement date for the specific LOA will depend on the date you last renewed it.

If your producers have entered the late renewal period (within one year of the LOA expiration date) or hope to reintroduce their license (a measure available in Virginia for those whose renewal is more than one year but less than two years after them), this may cause a confusing level of renewal and reintroduction dates, but hopefully it also gives them more points to turn around and get right with the government.

The Commonwealth of Virginia has also issued a reminder that quarterly billing snippets for meetings should reflect their lower $ 7 fee. Previously, it was $ 10 to appoint an agency or producer. Glad Virginia is helping to counter inflation.

Washington adds language about HCSM

Following last year’s scandals with Sharity (HCSM) Sharity and its partner HCSM, Commissioner Mike Kreidler has proposed a review of the scanty legislation on the subject.

Kreidler said in his submission that Sharity and others failed to meet statutory requirements to even be an HCSM, and yet operated freely in the state. To address this, he would like to add language to clarify the standards an HCSM should follow.

Check out the suggested clarifications, or, if you want to dig into this obscure part of the industry that is not actually part of the industry, read our other coverage.

In other Washington news, the state moved to ban the insurer’s ability to use credit rating to take out personal insurance. The move has been questioned by insurance companies in court, and in March the state DOI accepted a judge’s pause to implement the rule until a lawsuit challenging it has been resolved. To read more about personal credit ratings in insurance, check out our second coverage.

Other government insurance operations in brief

  • North Carolina is clearing the roles of foreign licensees whose licenses for resident states have expired.
  • Hawaii license reactivation must be online now (almost like a paperless trend!), As well as CE reporting. Licensees must also complete the CE 15 days before the license renewal so that the CE supplier has time to electronically submit registers to the state.
  • Florida added custom company licenses by the end of 2021, but custom company licenses are not yet available through the National Insurance Producer Registry’s producer database. So, meanwhile, Florida’s CFO Jimmy Patronis’s office is reminding the public that they can verify licenses on the Florida Department of Financial Services’ website.

Although these places of interest are not comprehensive, our knowledge of manufacturer licensing and compliance is. See how AgentSync can help you look smarter today.

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