Licensing in RI
Licensing in RI
A person must not sell, solicit or negotiate any class of insurance in this state unless the person is licensed for that line of authority.
Disclosure requirements do not apply to:
A licensed insurance producer who acts only as an intermediary between an insurer and the customer's producer, for example: a managing general agent, a sales manager, or wholesale broker The placement of insurance in secondary or residual markets A producer whose sole compensation is derived from commissions, salaries, and other remuneration from the insurer.
Who qualifies for a Nonresident Licensing?
A nonresident person will receive a nonresident producer license if: The person is currently licensed as a resident and in good standing in their home state The person has submitted the proper request for licensure and has paid the required fees The person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to their home state, or in lieu of that application, a completed uniform application The person's home state awards nonresident insurance producer licenses to residents of this state on the same basis
Reinstatement
A producer who allows their license to expire may reinstate the license without having to pass a written examination, within 12 months from the due date of the renewal fee. A penalty in the amount of double the unpaid renewal fee is required for any renewal fee received after the due date.
Termination of License
An insurer who terminates employment or other relationship of a producer must notify the Commissioner within 30 days after the effective date of the termination. Within 15 days after notifying the Commissioner of the termination, the insurer must mail a copy of the notification to the producer.
Types of Licensing in RI
Any person who meets the requirements will be issued an insurance agent license. The lines of authority are: - Life - Accident and health or sickness - Casualty - Property - Variable life and variable annuity products - Personal lines - Credit - Any other line of insurance permitted
Insurance producer requirements
Anyone who wants to transact business as a producer must apply with the Commissioner and: Be at least 18 years of age Have not committed any act which is a ground for denial, suspension, or revocation of a license Submit the required application and fees Pass the examinations for the lines of authority for which the person has applied.
Insurance Producer
Is a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance.
Continuing Education (CE) requirements do not apply too:
Natural persons holding resident licenses to sell any kind or kinds of insurance for which an examination is not required by the law of this state Persons holding a limited or restricted license, which is exempted by the insurance Commissioner Nonresident licensees who must meet CE requirements established by the insurance department in their home state if the state of their residence, in the opinion of the Commissioner, accords substantially similar treatment to residents of this state Persons holding a license for 25 years and who are age 55 at the time of renew
Commissions
No insurer or insurance producer may pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person for services as an insurance producer unless the person performing the service held a valid license regarding the class or classes of insurance as to which the service was rendered at the time the service was performed. No person, other than a person properly licensed at the time the person performs services as a producer, may accept any commissions, service fee, brokerage, or other valuable consideration for the services.
Limited Temporary Licenses
The Commissioner may issue a temporary insurance agent license for a period not exceeding 180 days, without requiring an examination, in the following circumstances: The surviving spouse or court-appointed personal representative of a licensed insurance agent who dies or becomes mentally or physically disabled: □ For the sale of the insurance business owned by such insurance agent □ For the recovery or return of such insurance agent to the business □ To provide for the training and licensing of new personnel to operate such insurance agent's business To a member or employee of a business entity operated by a licensed insurance producer, upon the death or disability of that individual To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America In any other circumstance where the insurance Commissioner deems that the public interest will best be served by the issuance of this license The Commissioner may Limit any temporary licensee's authority if it is in any way deemed necessary to protect the insured and the public Require the temporary licensee to have a suitable sponsor who is a licensed insurance producer or insurer and who assumes responsibility for all acts of the temporary licensee Revoke a temporary license if the interest of the insured or the public are endangered.
Continuing Education (CE) requirements apply too:
The continuing education requirements apply to resident and nonresident persons licensed to engage in the sale of the following lines of insurance: All lines of life insurance and health insurance All lines of property and casualty insurance All other lines of insurance for which an examination is required for licensing
Fees for Licensing
The fees for each license type are as follows. - Insurance Producer License fees apply to all insurance producers licensed in the major lines of authority (life, accident and health and sickness, property, casualty, variable life and annuity, personal lines - property and casualty); title insurance producers and all limited lines of authority: - Residents - $120 - Nonresidents - $130 - Public, Company and Independent Claim Adjuster - $250 - Motor Vehicle Damage Appraisers - $150 - Surplus Line Brokers □ Residents and nonresidents - $100 - An individual is only eligible for a Surplus Lines Brokers license if the individual has a valid Insurance Producers License with Property & Casualty lines of authority - Reinsurance Intermediaries - $200 - Portable Electronics Vendors - $200
Producer Compensation Disclosure
When any producer receives any compensation from the customer for the initial placement of insurance, that producer may not accept or receive any compensation from the insurer or other third-party for placement of the insurance unless, prior to the customer's purchase of insurance, the producer has: Obtained the customer's acknowledgment that such compensation will be received by the producer; and Provided a description of the method utilized for calculating the compensation to be received from the insurer or other third-party for the placement.
Business Entity
which is a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity, acting as an insurance producer may elect to obtain a producer license..