Effective July 1, 2001 the Producer Licensing Bill, HB35, will become law. This is a major change to Idaho’s licensing laws. The following is a list of some of the changes that will occur:
- Agent, Broker and Consultant licenses will be converted to a single Producer license. The law defines all individuals who sell, solicit or negotiate insurance or annuity products as “producers.”
- The law states that if an individual or firm is a licensed producer appointed by an insurer, that individual is acting as an agent for the insurer. If the licensed producer is not appointed, he or she would be acting as a broker on behalf of a client.
- There will no longer be a requirement to have an appointment prior to initial licensing. In addition, appointing companies are not required to do a background check under Idaho law.
- There is no requirement for a Producer to carry a bond under the new law.
- When acting as a Producer, the new law does not allow for the charging of any fees in addition to, and outside of, the premium, as stated in the contract of insurance.
- Effective July 1, 2001, the fee for a new producer’s license and for the biennial renewal of the license will be a flat fee of $80.00.
- Fees for letters of certification or clearance will no longer be charged. However, if a Producer applies for a license in a state that has passed the Producer Licensing Model Law, the state will use the NAIC Producer Data Base to verify licensing status and paper certification will not be required.
- If a Producer is acting as an agent for an insurer, the Producer must be appointed within 15 days of date of the contract or the writing of the initial insurance application. The requirements of the Idaho Code regarding surplus lines brokers remain unchanged.
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