What Changes To The Insurance Licensing Procedure Went Into Affect January 1, 2001?

In an effort to simplify and streamline their licensing procedure, the New Hampshire Insurance Department adopted legislation that followed the lead of The National Association of Insurance Commissioners (NAIC). This resulted in the adoption of the Producer Licensing Model Act that encourages the use of enhanced technology that improves the regulation of insurance industry. Licenses issued under the prior law include the following:

Agent licenses were issued to individuals and business entities. An agent license allows an individual, or an entity, to bind the authorizing company. Different licenses were issued for varying lines of business.

Broker licenses were issued to individuals and business entities. A broker­licensee may negotiate insurance transactions; but may not bind an insurance company.

Consultant licenses were issued to individuals and business entities. A consultant licensee may give consul and advise regarding insurance transactions.

Under the new law, instead of issuing the various types of licenses named above, all qualified individuals and entities are issued a Producer license.

Producers may act as:

consultants,

brokers, or

agents.

Agent for a company:Similar to the old law, you must receive authorization from your company through the Department. Company appointments are valid until either they are cancelled by the appointing company or until the producer license is cancelled or not renewed. Probably the biggest change that licensees will notice involves the Department's utilizing the licensee's birth date (or in the case of corporate licensees, the incorporation date) to establish expiration (i.e. renewal) dates for newly issued producer licenses.

Speak to an Experienced Insurance Attorney Today

This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified insurance lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local insurance attorney to discuss your specific legal situation.

Disclaimer

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.