Producer Licensing & Appointment Policy
Topics covered on this page:
FOR BROKER USE ONLY
The Hartford 's goal is to be the preferred source of financial products for financial professionals, individuals and employers. We are working to achieve that goal in a number of ways. We do it by providing our distribution partners with quality products and services. And we do it by complying with all industry regulations in order to protect our business and yours.
Effective May 1, 2007, we are releasing a robust and revitalized producer licensing and appointment policy.
Department of Insurance regulations require that, before we provide a proposal, we ensure both the producer and sub-producer are licensed in the situs state, and are appointed with the appropriate Hartford issuing company. We're committed to complying with all industry regulations, and to ensure 100% compliance with producer and employee licensing and appointment requirements, The Hartford's Group Benefits Division is introducing more rigorous procedures. This is not a change in legal requirements, but a change in the process and controls put in place to ensure those requirements are met. Failure to provide correct information will slow or stop a quote in process, may impact turn-around times, and result in non-payment of commissions to producers .
We value doing business with our producing partners, and hope to continue our successful relationship for many years to come .
Producer Licensing & Appointment Frequently Asked Questions (FAQs)
- Why do we need to change our current process?
- What is changed regarding producer licensing and appointment procedures?
- What is the definition of producer?
- What is the definition of sub-producer?
- What is the difference between a producer and a consultant?
- If new licensing procedures take effect on May 1st, will commissions be paid for business in process on April 30th that has incomplete sub-producer licensing/appointment information?
- Which states are 'restricted states' and require complete licensing and appointment information for both producer and sub-producer before business can be quoted?
- What is the 'situs state'?
- What is the 'situs state' for determining Licensing and Appointment for Trust business?
- Will these changes in producer licensing procedures impact turn-around times for quoting?
- What happens if an RFP is submitted that identifies an unlicensed sub-producer?
- What if an RFP is submitted that identifies the sub-producer, but the producer later wishes to change the sub-producer?
- When is the Producer Assignment Form required to be completed by a producer?
- Where can I get additional information on this issue?
Q: Why do we need to change our current process?
A: For several reasons:
- State Departments of Insurance (DOI) frequently review insurance company's compliance including state licensing requirements during market conduct exams. Failure to comply with these laws may result in fines.
- Need for consistency.
- Simplify application and clarify policies and procedures to limit exceptions.
- Add appropriate internal controls to ensure ongoing compliance with state laws and regulations.
Q: What's changed regarding producer licensing and
appointment procedures?
A: New processes and controls have been put in place to ensure 100% compliance with all
laws and regulations regarding producer licensing and appointment.
Q: What is the definition of producer?
A: An entity or individual that solicits, negotiates, sells or places
insurance business with more than one company and has no exclusive contract requiring
that all business be offered to a single company. This is a general term which
includes agents, brokers and consultants who engage in the foregoing activities.
Q: What is the definition of sub-producer?
A: An individual employed by or under contract with a producer to solicit,
negotiate, sell or place insurance business.
Q: What is the difference between a producer and a consultant?
A: A consultant is an entity or individual that (a) does not engage in any of the foregoing
activities, (b) is providing consulting services to a proposed group policyholder, and (c) is not paid any
compensation by The Hartford related to the case for which a quote is requested. Consultants are not subject to
these policies and procedures.
Q: If new licensing procedures take effect on May 1st,
will commissions be paid for business in process on April 30 th that has incomplete sub-producer licensing/appointment information?
A: The current rules will apply to all RFPs or RFCs submitted up through April 30, 2007 and the new rules will apply to all RFPs or RFCs submitted on or after May 1, 2007 .
Q: Which states are ‘restricted states' and require complete licensing and appointment information for both producer and sub-producer before business can be quoted?
A: FL, GA, NC, PA, UT, Puerto Rico, Virgin Islands and Guam
Q: What is the “situs state”?
A: "Situs state” is the state where the application is signed, the policy is issued, and premium tax is paid.
Q: What is the “situs state” for determining Licensing and Appointment for Trust Business?
A: The location of the participating employer will be used to determine where a Producer and Sub-Producer must be licensed and Appointed for Trust business.
Q: Will these changes in producer licensing procedures impact turn-around times for quoting?
A: If complete and accurate producer and sub-producer information is provided at the time of RFP or RFC as required and assuming that the producer and sub-producer are properly licensed and appointed, there should be no impact to turnaround times due to licensing procedures. However, if incomplete or inaccurate information is provided, proposals will be held until the correct information is provided.
- Restricted States – both license and appointment are required at time of request for proposal. Turnaround times may be impacted if the producer and/or sub-producer is not properly licensed and appointed with The Hartford.
- Non-Restricted States – license and appointment OR copy of license and completed appointment form are required at time of request for proposal. Turn-around times will be impacted, if this information is not submitted to The Hartford in a timely manner.
If The Hartford receives information in a timely manner, there should be sufficient time to initiate the appointment process prior to the proposal due date.
Q: What happens if an RFP is submitted that identifies an unlicensed sub-producer?
A: The Hartford will contact the Sub-Producer to request that the producer complete the Producer Assignment Form or provide an email with the information requested in the Producer Assignment Form. Keeping in mind quote due date restrictions, the other option would be to resubmit the RFP with an appropriately Licensed and Appointed sub-producer.
Q: What if an RFP is submitted by a producer that identifies the sub-producer, but the producer later wishes to change the sub-producer?
A: A request to change the sub-producer must be made by the producer by either completing the Producer Assignment Form or providing an email with the information requested in the Producer Assignment Form. If the case has already been released to active status, an RFC for a Producer of Record Change is required.
Q: When is the Producer Assignment Form required to be completed by a producer?
A: The Producer Assignment Form is to be used when The Hartford has been unable to appoint the producer or sub-producer identified in the original submission and/or the producer wishes to identify a new sub-producer once the quoting process has started.
Q: Where can I get additional information on this issue?
A: Any questions regarding licensing procedures for brokers, contact Brian Gilson at (860) 843-6845
GBD Licensing Appointment Application
Download the Group Benefits Division Licensing Appointment Application here or from Producer View.
Pre-Sale Request for Proposal (RFP) and Request for Change (RFC) Process
- Complete and accurate information for the producer and sub-producer are required upon submission of a request for proposal. Minimum required is the p roducer's (Agency) legal name and the sub-producer's full name.
- If producer and sub-producer information is not provided, or is not confirmed as accurate, the proposal will not be released until appropriate information is received.
- Producer and sub-producer information cannot be changed during the processing of the proposal, unless The Hartford receives a completed assignment form.
Before a quote is released:
- In non- restricted states , both producer and sub-producer must be licensed and appointed with the appropriate Hartford issuing company or appointment paperwork received
- In restricted states, both producer and sub-producer must be licensed and appointed with the appropriate Hartford issuing company.
- The standard will be 100% compliance – no exceptions.
Sold Case Process
- Prior to release to active, both producer and sub-producer must be licensed and appointed in the situs state with the appropriate Hartford issuing company or no compensation will be paid related to that policy during it's initial term.
- The standard will be 100% compliance – no exceptions.
Compliance Focus Monthly Newsletter
Sharing legislative changes surrounding producer licensing and continuing education
- Current Issue: August 2008
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