Michigan Insurance Update - 10/01/13 - Supportive Insurance Services

michigan insurance licensing Supportive Insurance Services is happy to provide our clients with up-to-date information related to insurance licensing. If you have any questions regarding how a particular states regulations effect your insurance licensing needs, please feel free to contact us. Our team of insurance licensing specialists will be happy to help answer your insurance licensing questions and make sure your insurance agency’s needs are met.

STATE OF MICHIGAN
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES OFFICE OF INSURANCE LICENSING AND MARKET CONDUCT
In the Matter of:
Designated Responsible Licensed Producer
Bulletin 2013-17-INS
Issued and entered
this 24th day of September 2013 by R. Kevin Clinton Director

This bulletin supersedes Bulletin 2010-01-INS, dated January 7, 2010.

MCL 500.1205(2)(b) requires a producer business entity applicant to identify a designated responsible licensed producer (DRLP) in order to obtain licensure. The DRLP is responsible for the business entity’s compliance with state insurance laws, rules and regulations. Because the DRLP will be held responsible for the activity of the business entity (agency), it is imperative that the DRLP understand the responsibility associated with the designation and that the DRLP has sufficient authority to ensure the business entity’s compliance with the state’s laws, rules and regulations.

Bulletin 2010-0-INS required all licensed and applicant business entities to designate a DRLP. At that time it was required that a DRLP be designated for each line of authority that the business entity held. After review of the statutory requirements, it has been determined that a DRLP is not required to hold all of the same lines as the affiliated business entity.

Effective immediately, the DRLP must hold an active Michigan resident or non-resident producer license, but he/she is not required to hold the same line or lines of authority that the business entity holds. However, the DRLP is responsible for agency compliance regardless of the line of authority. An agency may designate one or multiple DRLPs.

When the Department of Insurance and Financial Services (DIFS) finds that an agency no longer has an active DRLP, the business entity will be sent a Notice of Opportunity to Show Compliance (NOSC) advising it has 14 calendar days within which to cure the situation by designating a replacement DRLP or by showing it has been in continuous compliance.

A DRLP may be designated by submitting to DIFS the Insurance Business Entity Affiliate Disclosure, FIS-0200 form. The FIS-0200 is located at www.michigan.gov/difs under Forms. After the designation of a replacement DRLP is received by DIFS, the business entity and the new DRLP will be notified of the recording of the new designation and an updated license will be generated and mailed to the business entity identifying the current DRLP(s).
If the business entity does not respond to the NOSC within 14 calendar days, DIFS will pursue further compliance action which may include a fine and revocation of the agency license.

Any questions regarding this bulletin should be directed to:

Department of Insurance and Financial Services Office of Licensing and Market Conduct Insurance Licensing Section
611 West Ottawa Street
P.O. Box 30220
Lansing, MI 48909-7720
Toll Free: (877) 999-6442

For more information call 317.257.5734 or email Jeff about how our insurance licensing team can save you time and money.

The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney for questions regarding the legal ramifications of this information.

“We have been using Supportive Insurance Services for over 4 years now and are very pleased with the entire team’s professionalism. With hundreds of agency and individual licenses to manage they are an invaluable business partner to us.”

Jonathan Hageman, Dubraski & Associates Insurance Services

“Every member of the SIS staff has 100% of the time been polite, happy to talk or email, and has gotten back to us very quickly if ever a VM or email. We could not be happier with our customer service we receive from Supportive Insurance Services. Top of the line, and well worth every penny!

David R. Smith , Sanger & Altgelt LLC

“Our company has worked with Supportive Insurance Services for several years and greatly value the support and services they provide us. Starting with our Team Leader Cindy Hawkins, they are extremely responsive, pro-active, professional and friendly. We are very happy with their overall service and support.”

John Losurdo - Officer, RHSB

“Deciding to oursource our licensing compliance to SIS was one of our best decisions we have made for our insurance agency. You have saved me and our growing team so much time and have improved our compliance. I would unconditionally recommend SIS to any growing insurance agency.”

Phil Nisbet, World Insurance Associates LLC

“It’s a pleasure doing business with Supportive Insurance Services, reliable, efficient and friendly. For over 10 years they have taken care of our license needs, transitions and/or additions, as quickly and easily as possible. Their work ethics and constant positive attitudes are second to none.”

Lynn Cutforth, LIPCA Insurance

“I could not be happier with the decision we made so long ago. Everyone at SIS is so easy to do business with and they all possess that friendly, down to earth Indiana charm.”

Terri Young, VTC Insurance Group