We speak with clients daily who are looking to outsource their insurance licensing. To help you better understand the benefits of outsourcing, we thought we’d share the top 5 reasons our customers choose to outsource.
1. The staff hates doing it
I always ask a potential client “Who is currently doing your insurance licensing? Do they like doing it?” The answer is always “No, they hate it.” That’s because it’s not part of their normal duties and they aren’t comfortable with the various state regulations
2. Administrative Actions
Many times we hear from clients who have received an administrative action in the past and didn’t realize they had to report it to other states until it was too late. The result can be additional state fines for not reporting the original action within the required time frame.
3. Address Changes
If you or your insurance agency holds licenses in non-resident states, each state must be notified of the address change. This includes business, mailing and resident address changes. The process is much more difficult with insurance agency licenses because the process is manual in almost every state.
4. Agency Licensing
Non-resident insurance licenses for agencies and corporations are even more complicated than individual licensing. Some states require organizations have a Corporate Registration with the Secretary of State’s office prior to applying for an agency license. It is complicated, tedious and requires copious follow-up.
5. Annual Reports
Once corporate registrations are in place, most states require the entity to file annual reports. Just like your insurance licenses, they are due at different times during the year. If annual reports are not filed timely, the result can be your corporate registrations being revoked. In turn, your agency licenses could be cancelled.
That’s the bad news. The good news is that insurance professionals who get a headache just thinking about licensing issues can find relief by turning to the experts at Supportive Insurance Services who actually thrive on meeting the myriad challenges of the licensing world.
Give us a call to see how we can help!