Appointments are required of those producers or business entity's who are acting in the capacity of an "agent of the insurer". 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. Written notice or verification of all appointments are mailed to both the insurer and the licensed producer.
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 by the producer or business entity to the insurance company. All appointments are renewed on an annual basis. All appointments and terminations are processed through March 31st of each year and then each insurer is provided with a list of all appointed producers along with a billing statement. Electronic appointment renewal processing will be available in 2002. New and renewal appointment fees are $10.00 for resident producers and $20.00 for nonresident producers.
Appointments may be terminated either by use of paper forms or electronic appointment termination through the NAIC Producer Information Network (PIN). To access the Producer Information Network (PIN) you may call the NIPR's product information line at 8167838468. Insurers must provide the Division with a reason for termination. The Division sends written notice of an appointment termination to both the insurer and the producer.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified insurance lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local insurance attorney to discuss your specific legal situation.