NEED AN APPOINTMENT TO SUBMIT AN APP? NOT ALWAYS. NEED A LICENSE? YOU BET.
We are receiving a number of applications where the writing broker was not licensed in the state where the insurance was solicited and/or was intended to be issued. We are also receiving AppAssist Request for Life Insurance Interviews (RLIs) where the writing broker was not licensed in the state where the owner resides.
While some states do not require an appointment with a carrier before an application is solicited, an active producer or agent life insurance license is mandatory in all states.
If the application or RLI does not include full information on the broker, or if we are unable to locate an active license for him or her in the National Insurance Producer Registry (NIPR) database in the owner’s resident state, the application or RLI will be rejected and returned. The application or RLI cannot be re-submitted until the broker is licensed in the state of sale. If re-submitting, the new application page 5 must also be dated on or after the effective date of the writing broker’s state license.
In states that require everyone in the writing broker’s upline to be licensed to receive commission and override commission (FL, GA, MA, MT, NC, NM, NY, PA, SC, VA, WI and WV), the Brokerage General Agency (BGA) must also have an active license in the state prior to the application being solicited. A BGA not licensed in the state of sale will also result in rejection of the application or RLI.
Please take a look at The Basics for more information on licensing and appointments