There are many ways for an Insurance Agency to run afoul of the Dept. of Insurance. The following is a list of common licensing issues that will result in administrative actions from a Department of Insurance.
- Misrepresentation on a license application (such as answering NO to question on license application regarding prior administrative actions when there have been issues in the past)
- Placing or Renewing Policies while unlicensed
- Failure to report address changes in a timely manner
- Failure to file Surplus Lines Tax Payments
- Not responding promptly to written requests for information from the Dept. of Insurance
- Failure to disclose administrative action within appropriate time frame
These administrative actions can result in fines and/or revocation of license. The failure to disclose administrative actions in a timely manner is particularly difficult. If the agency or producer has insurance licenses in multiple states, this could trigger administrative actions in each state not informed. This could be very expensive, time consuming, and could require legal firm representation.
How do you avoid this type of administrative hot water? Engaging a company that is solely focused on license management like National License Compliance Group (NLC Group) will provide you the expertise to better manage your licenses, avoid administrative issues, and provide you with risk management peace of mind.
Contact National License Compliance Group today 866-285-4209 to see how we can help you achieve worry free insurance license management. InsuranceLicensingServices.com
Prevent Licensing fines, use NLC Group Services.
Zenefits was fined $62,500 By TN for using unlicensed brokers.
Making your independent insurance agency marketing strategy actually work can seem like a difficult task at times, especially when the marketing is digital. In fact, you may have thrown in the “digital marketing towel” altogether. However frustrating your experiences may have been, digital…
Insurance license renewal and initiation is an important process for insurers to consider. Each state has different processes and necessities that must be fulfilled in order for the renewal process to become satisfied. Understanding these requirements and complying with them is crucial. Here are a few things to keep in mind regarding insurance licensing:
1. Understand the Requirements for Each State
When initiating a license in a particular state, there may be different requirements for each state. For example, Georgia requires a citizenship affidavit and Florida requires finger prints. It is important to understand these issues and take note of them to order licenses correctly.
2. Follow Changes In Laws and Regulations
These are constantly changing in every state. If you are not properly informed of these changes you may fall out of compliance. For example, Massachusetts recently changed continuing education requirements to include three credits of ethics as well as changing the CE deadline to the producer’s license renewal date (see here).
3. Take Note of Renewal Dates
It is crucial to take note of when these dates are upcoming so your licenses do not become out of compliance. When you forget to renew a given license, fees and penalties can follow along with them. Selling policies while improperly licensed not only can result in penalties, but also result in suspension as well as adversely affecting your reputation.
The insurance license process can be hard for businesses to manage with so many other priorities needing attention. The National License Compliance Group (NLC Group) can take care of these critical tasks for you and ensure you will never become out of compliance. With our specialized services offering email alert notifications and management dashboards to display license and appointment information, the license management process can be a breeze.
Call Us at (866) 285-4209 to Learn More
Risk Mitigation is something that all companies should keep in mind. Risk mitigation is implementing options for your business to generate more opportunities and reduce the amount of possible threats that could be inflicted on your company.
This is also important when it comes to insurance licensing. When dealing with licensing, it is always important to make sure you have the necessary steps in place to ensure your licenses do not go out of compliance. Here are 5 ways to achieve risk mitigation:
1. Identify the Risk
Once a particular risk is identified, you can take the necessary precautions to plan around them and protect your business.
2. Dodge It
You can make the necessary adjustments to avoid getting hit with these risks. Whether it be adjustments to your budget, timing, or lack of knowledge, you can make the necessary changes to ensure your risks are being managed.
3. Plan Ahead
Make sure you are tracking these risks to lessen the possible toll that can be taken or completely avoid it.
Don’t think you can handle the situation? Delegate the task to someone else in your company or outsource it to a third party to ensure you are covered and not at risk.
5. Track It
Keep track of the risk to make sure it does not slip away from you, hitting your company unexpectedly.
These steps can ensure that you will be prepared for a risk targeting your company. Here at the National License Compliance Group, we take these necessary steps for all of our clients to ensure licenses never fall out of compliance; that our clients are informed of every change in license regulations; and that proactive steps are in place to manage risks.
Please contact us at 866-285-4209 for a free consultation today!
Why Choose to Oursource Your Licensing?
One of the biggest responsibilities for insurance agencies and carriers is making sure insurance licenses and appointments stay in compliance. If not managed correctly, your company can be seriously penalized like MetLife was in March (see article here). Because the cost of non-compliance can be so severe, it is vital to ensure license and appointment management is under control.
So you may be asking yourself, “Why would I outsource when I can manage everything right from here?” Here are the top 5 reasons why you should outsource:
1. Mitigate Risks
Outsourcing license and appointment management provides you with experts with the knowledge, experience, and processes to ensure your licenses and appointments are kept in compliance. This greatly reduces your license compliance risk and avoids expensive penalties, fees, and state consent orders.
2. Improved Focus
When you choose to outsource, you free up vital internal resources, allowing experts to manage the license and appointment process for you. This allows your internal resources to focus on other core areas of your business including revenue generating initiatives.
3. Lower Costs
Instead of conducting license management activities in house, outsourcing provides a more cost effective alternative saving your business both time and money. Many insurance agencies and carriers have their own dedicated license management positions. Through outsourcing, you can take advantage of the outsource partner’s economies of scale, streamline your staffing, turn fixed costs into variable costs, and save your company money.
4. Enhanced License Management
When outsourcing your licensing, the outsourcing company will focus all of its energy on managing your licenses and appointments. You do not have all day to work on renewing licenses and managing appointments. But guess what? Companies can take care of that for you! They will work day in and day out to guarantee your licenses never fall out of compliance and keep you abreast of ever changing state licensing regulations.
5. Advanced Capabilities
When thinking about outsourcing you must ask yourself “Are they offering anything that I cannot do myself?” Outsourcing companies offer advanced software and proactive services that ensure your license and appointment processes are efficiently managed and deliver enhanced capabilities. These capabilities include secure access to licensing data; improved scalability, continuity, and flexibility; proactive alerting; improved reporting etc.
National License Compliance Group (NLC Group) is a national license compliance company offering license and appointment management on an outsourced basis. We are license management experts. We have years of experience developing and successfully implementing solutions to support the insurance industry.
NLC Group prides itself on delivering uncompromising client service including accommodating unique customer requirements. Our proprietary processes, services, and state-of-the-art cloud based software provides you with worry free proactive management and execution of your licensing and appointment needs. You are always informed as we provide 24 x 7 real time access to your compliance status across the enterprise. We offer our clients a dedicated and knowledgeable client services team with an assigned dedicated account manager who is always available to answer questions and ensure your license and appointment management needs are met.
Contact us today at 866-285-4209 to learn more.
Welcome to InsuranceLicensingServices.com