The Utah Insurance Department issued Bulletin 2022-5 regarding appointments and designations.
The bulletin began, “The Utah Insurance Department regularly learns that insurers, agency producers, individual producers and adjusters have failed to inform the commissioner of their insurance business affiliations. Those omissions hamper insurance regulation and can result in forfeitures.”
It asked producers and adjusters holding Utah Insurance Department Licenses to remember to review and comply with appointment and designation requirements.
It reminded licensees that insurers must appoint an individual or agency with whom they have a contract as an insurance producer, limited line producer or managing general agent to act on the insurer’s behalf in order for the licensee to do business for the insurer in this state. In addition, insurers are required to report a new appointment or the termination of an appointment.
It provided the following requirements for agency producers:
- An agency producer is required to designate a licensed individual who will sell, solicit or negotiate insurance on an agency producer’s behalf.
- An agency producer is required to report the name of the designated responsible licensed individual who has authority to act on behalf of the agency in the matters pertaining to compliance with this title and orders of the commissioner.
- To sell, solicit or negotiate insurance on an insurer’s behalf, an agency producer with a reinstated license must first be reappointed by the insurer.
- An agency producer with a reinstated license must re-designate a licensed individual who will sell, solicit, or negotiate insurance on the agency’s behalf.
- An agency producer with a reinstated license must re-designate the designated responsible licensed individual with authority to act on the agency’s behalf concerning regulatory compliance.
It noted that individual producers must have an appointment from an insurer or a designation from an agency in order to sell, solicit or negotiate insurance. In order to sell, solicit or negotiate insurance on an agency’s or insurer’s behalf, an individual producer with a reinstated license must be redesignated by the agency or reappointed by the insurer after reinstatement.