#License timeplus update#
#License timeplus manual#
#License timeplus verification#

Instead of turning to producers to pull their own license copies through the PDB, other companies will go directly to NIPR and pay a fee for a one-time PDB pull.

#License timeplus manual#

With that in mind, manual checks expose companies to unnecessary risk. When it comes to regulatory actions, all parties involved are at fault.

#License timeplus update#

What if there are changes to a producer’s license between when they wrote the business and when they receive commission payouts? Who’s making sure the license on file is accurate and up-to-date? What if a producer receives a regulatory action and has their license suspended? There’s no guarantee that the producer will cease writing business and update the carriers or MGAs they work with. This strategy relies on the honor system, which raises a few red flags. That sounds reasonable enough: Share compliance responsibilities with the producers.īut there’s a cost associated with managing license copies: Producers need to pay for each license copy pulled through the producer database (PDB), plus companies need to employ a large enough team to accurately keep on top of producers and make sure they’ve sent in their most up-to-date licenses and process the license copies once received (all before greenlighting them to sell). Some companies require producers to send in a copy of their license in every state in which they’re licensed. But the issue is that they’re often very time-consuming and can leave a company exposed to the risk of costly human error. These processes can do the job, and sometimes they can be done well.

#License timeplus verification#

So, it makes sense that there are manual legacy processes for license verification that include paper documents, spreadsheets, and re-keying data.

Producer license verification checks aren’t anything new. The hard ways to approach producer license verification Let’s look at some of these options below. Done wrong, producer license verification can be a never-ending project that drags on compliance teams, results in regulatory actions, and limits growth. Done right, producer license verification can be a seamless check to protect against compliance mishaps (and yes, this means checking licensure of every producer every time they write business). There are a few different ways to go about license verification. And if you’re reading this thinking, “Absolutely not, there’s no way to check licenses that frequently,” just know that you’re unnecessarily opening yourself up to regulatory risk. That doesn’t sound so bad, but remember, these license details need to be verified for each producer every single time they write business and, in many states, every time they’re paid commissions. How do you verify your insurance agents are licensed to sell in each state they need to be, at all times? There are 3 ways to go about it but only one way th… Producer License Verification: Three Ways to Verify Producer Licenses