Eliminate Producer Compliance Issues with VUE Software’s NIPR Integration
The National Insurance Producer Registry (NIPR) was established in October 1996 as an independent nonprofit affiliate of the NAIC. The NIPR is a unique public–private partnership that supports the work of the state departments of insurance and the NAIC in making the producer-licensing process more cost-effective, streamlined, and uniform for the benefit of regulators, the insurance industry, and the consumers they protect and serve.
The NIPR developed and implemented the national repository for producer license information, also known as the Producer Database (PDB). It established a network to facilitate the electronic exchange of producer information called the NIPR Gateway.
The PDB is an electronic database consisting of information relating to insurance producers, such as the following:
• National Producer Number (NPN), a unique identifier for all individual producers and most business entities
• General demographic information relating to all producers, such as name, residence, and business addresses
• License information, including resident and nonresident states licenses, license numbers, license classes, lines of authority, and issue and expiration dates
• Company appointment information such as effective date, termination date, and termination reason
• Regulatory actions
Currently, the PDB includes information from all 50 states, as well as the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. It includes demographic, licensing, appointing, and the Regulatory Information Retrieval System (RIRS) actions on one report, whether licensed in one state or all states. This information is accessible through the NIPR on a subscription basis through the Internet. The PDB links state regulatory licensing systems into one common system, establishing a repository of producer licensing information. The PDB also contains or references producer information from sources such as the RIRS of the NAIC.
“In 2008 VUE Software formed an Alliance with the NIPR which enables VUE to integrate their system with the NIPR allows automated retrieval of producer information by pulling data directly from the PDB, and updating the appropriate fields in the client records. This integration with the PDB uses an alert process to continuously update client records with the latest changes through VUE Onboarding and Compliance. This process automated process enables VUE clients to maintain compliance with government rules and regulations which are constantly changing.”
Some of the benefits for using VUE are: • Updated data is kept current in VUE through regularly scheduled PDB integration • NIPR transactions update the appropriate fields in the producer’s profile • Updates are automated rather than requiring manual data entry • Regulatory actions are reported • Reporting capabilities are available to meet your needs • Notifications and work tasks are created for compliance for users to update changes in critical data elements in the PDB: resident state changes, name changes, etc.
In 2015, the NIPR assisted more customers and transmitted more transactions than ever before: 25,140,284 to be exact. Of that number, 42.4% were PDB reports, 36.4% were appointment and appointment-termination transactions, 14% were Contact Change Requests (demographic changes), and 6.8% were electronic license applications.
The NIPR sent $568,204,047 in fees to the states in 2015. The number of records in the PDB grew as well to 6,161,045, which includes individuals and business entities. Also, the number of newly licensed individuals increased to 1,595.983.
Using an automated system that tracks producer information from all 54 jurisdictions, sends alerts, and automatically updates changes in producer information can increase your company’s efficiency and help avoid market conduct fines and sanctions.