Company Appointment (Certification)
A company is required to appoint (or “certify”) each producer that will transact insurance business in Kansas on its behalf.
Note: Legislative changes which take effect July 1, 2021, will impact company appointments in the following ways:
- A company will no longer be required to file appointments for business entities (agencies). Current business entity appointments will be canceled as of July 1, 2021, and removed from the Department’s records.
- Business entities (agencies) will no longer be required to report affiliated licensed producers (agents) to the Department. This means they will no longer be required to submit the AG11 Form to add or delete producers affiliated with the agency.
- Agency-affiliated producer appointments in effect on July 1, 2021, will not be canceled. Instead, these appointments will be converted to direct individual producer appointments with the appropriate companies.
- If a company does not wish to have an individual producer appointed, it will be able to terminate the individual appointment after July 1, 2021.
- Companies can obtain a Company Appointment Report (CAR) from NIPR after July 1, 2021, to verify the accuracy of producers having appointments with the company.
For additional information see the “Producer Licensing Reform Implementation FAQ.”
Effective July 1, 2021, Companies must submit all individual producer appointment and termination transactions electronically through the National Insurance Producer Registry (NIPR). Kansas charges a non-refundable appointment fee of $2 for each producer appointed by a Kansas-domiciled company and $5 for each producer appointed by a foreign-domiciled company. NIPR will be collecting the appointment fee for the State of Kansas at the time the transaction is submitted. You will no longer receive a monthly appointment billing invoice from the Department. Companies are responsible for paying the transaction fee charged by NIPR for appointments.
The Department will NOT accept appointments submitted to it after July 1, 2021.
Appointments must be submitted to the Kansas Insurance Department within 30 working days of the appointment. Failure to appoint within the required time will subject the company to a monetary penalty.
Termination of Company Appointments
Cancellations/terminations of producer appointments must be submitted by the company electronically through NIPR. The Department does not charge a termination fee; however, the company is responsible for the transaction fee charged by NIPR for the termination. The company is responsible for notifying the producer and/or agency of the termination. The Department will not accept producer terminations submitted to it after July 1, 2021.
Company producer appointments are renewed annually on January 1. Companies are charged a renewal fee for all producer appointments active as of January 1st of each year. Companies are encouraged to obtain a CAR from NIPR prior to year-end to verify the accuracy of appointments and terminate producer appointments if necessary prior to December 31, 2021, to ensure the company is not accessed a renewal fee for nonactive producers.
After January 1, 2022, the company listing of all producer appointments in effect, and a statement for renewal fees due will be provided electronically on the Kansas Insurance Department Company Desktop.
RENEWAL FEES, AS BILLED, MUST BE RECEIVED BY THE DEPARTMENT ON OR BEFORE MARCH 1.
Payment should be remitted in the EXACT amount shown on the statement. The company’s canceled check will be a verification that renewals were paid.