Preparing for State Appointment Renewals 2018


Many carriers are starting to receive annual appointment renewal invoices, from insurance departments which can be quite daunting, to say the least. We all know that if we miss paying an invoice by the due date, all appointments get automatically terminated. The good thing is that technology is available to help us get organized and stay in compliance so we can process our renewals by the deadline.

Every licensed entity that appoints an insurance producer must file a renewal appointment annually with the state’s insurance commissioner. The carrier’s renewal of a producer’s appointment indicates that the appointing company has reviewed the producer’s background and fitness to continue to act as an agent of the company. Each state has its own process on how carriers must pay for these renewals. Currently, no uniform method designates how to pay and deliver renewal invoices. Some states mail out renewal notices, others send emails, and some participate through NIPR’s electronic appointment-renewal portal; then a few states require the carrier administrator to sign into their website to pay.

Currently, 18 states participate in the NIPR’s electronic appointment-renewals process. The carrier can upload the invoices and pay states directly. NIPR subscriber carriers can reconcile company appointments by obtaining a list of appointments via the Company Appointment Report (CAR) prior to creating renewal invoices. In all other nonparticipating NIPR states, a carrier needs to check appointments under each carrier’s license and decide which producers needs to be terminated or renewed.

Another caveat states provide is to allow carriers sufficient time to review their current appointments during the “termination period” to terminate any producer before they renew their appointments. If an agent is not terminated within the termination-period window, the appointment will automatically be renewed. Each state has their own termination period. Being able to review and terminate appointments for producers the carrier doesn’t want to do business with will to save the carrier time and money, which is crucial in any organization that wants to find ways to save on cost.


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