What Changes To The Insurance Licensing Procedure Went Into Affect January 1, 2001?

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What Changes To The Insurance Licensing Procedure Went Into Affect January 1, 2001?

In an effort to simplify and streamline their licensing procedure, the New Hampshire Insurance Department adopted legislation that followed the lead of The National Association of Insurance Commissioners (NAIC). This resulted in the adoption of the Producer Licensing Model Act that encourages the use of enhanced technology that improves the regulation of insurance industry. Licenses issued under the prior law include the following:

Agent licenses were issued to individuals and business entities. An agent license allows an individual, or an entity, to bind the authorizing company. Different licenses were issued for varying lines of business.
Broker licenses were issued to individuals and business entities. A brokerlicensee may negotiate insurance transactions; but may not bind an insurance company.
Consultant licenses were issued to individuals and business entities. A consultant licensee may give consul and advise regarding insurance transactions.

Under the new law, instead of issuing the various types of licenses named above, all qualified individuals and entities are issued a Producer license.

Producers may act as:

consultants,
brokers, or
agents.

Agent for a company:
Similar to the old law, you must receive authorization from your company through the Department. Company appointments are valid until either they are cancelled by the appointing company or until the producer license is cancelled or not renewed. Probably the biggest change that licensees will notice involves the Department's utilizing the licensee's birth date (or in the case of corporate licensees, the incorporation date) to establish expiration (i.e. renewal) dates for newly issued producer licenses.

Other New Hampshire Insurance FAQs

Q: What Is An Agent?
A: An agent is a licensed representative of an insurance company who solicits, negotiates, or effects contracts of insurance and provides service to the policyholder for … More
Q: What Is An Application?
A: An application is a signed statement of facts requested by the insurance company on the basis of which the company decides whether or not to issue the coverage. The … More
Q: What Is An Assignment?
A: An assignment is the signed authorization by the policyholder for the insurance company to pay benefits directly to the hospital, doctor, or other provider.
Q: What Is A Beneficiary?
A: A beneficiary is the person designated or provided for by the policy terms to receive the proceeds upon the death of the insured.
Q: What Are Benefits?
A: Benefits are the dollar amount payable by the insurance company to the claimant, assignee, or beneficiary under the policy.
Q: What Is A Claim?
A: A claim is a demand to the insurance company for payment of benefits under the insurance contract.
Q: What Is Cobra?
A: COBRA is a federal law that regulates group health insurance. If you lose your job and you worked for an employer who has more than 20 employees, you may be able to … More
Q: Can I Be Denied Group Coverage In New Hampshire?
A: Coverage under your group health plan (if your employer offers one) cannot be denied or limited, nor can you be required to pay more because of your health status. … More
Q: Can I Be Denied Group Coverage If I Am Sick At The Beginning Of The Coverage Period?
A: All group health plans in New Hampshire must limit exclusion of preexisting conditions. There are rules about what counts as a preexisting condition and how long you … More
Q: Can I Be Forced To Wait For My Group Coverage To Begin?
A: Yes. This is called the preenrollment period, usually between 3090 days. These waiting periods, however, cannot vary due to your health status. However, if … More