Company Appointment (Certification)
A company is required to appoint (or “certify”) each producer that will transact insurance business in Kansas on its behalf.
Business Entity Appointments:
Due to statutory changes which were implemented in Kansas effective July 1, 2021, Insurance companies no longer appoint business entities. Instead, companies must have direct appointments with individual producers which write business for the company, whether or not the producers are affiliated with an agency. Companies may not submit appointments for business entities (agencies) unless they are licensed with the Department as credit-only, auto rental-only, or portable electronics-only agencies. All appointments must be submitted electronically through NIPR.
Companies are required to submit all appointment and termination transactions electronically through 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 not receive a monthly appointment billing invoice from the Department. Companies are responsible for paying the transaction fee charged by NIPR for appointments.* Appointments submitted directly to the Department will not be accepted.
Appointments must be submitted through NIPR within 30 working days of the appointment. Failure to appoint within the required time will subject the company to a monetary penalty.
Companies may not submit appointments for business entities (agencies) unless they are licensed with the Department as credit-only, auto rental-only, or portable electronics-only agencies.
Companies can obtain a Company Appointment Report (CAR) from the National Insurance Producer Registry (NIPR) at firstname.lastname@example.org, to verify the accuracy of producers having appointments with the company.*
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. Terminations sent directly to the Department will not be accepted.
If a licensed producer fails to renew their Kansas license by the biennial renewal date, their license is suspended for 90 days. Companies are not able to accept business from a producer with a suspended license. If a suspended licensee fails to reinstate the license during the suspension period, the license expires on the 91st day and all appointments are automatically terminated at that time. The Department does not notify companies of the suspension or expiration of a producer’s license. A company can subscribe to services provided by NIPR to be notified of changes in a licensee’s status. Contact email@example.com to ask about PDB Alerts or other options for notification in changes of an appointment producer’s license status.*
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. In January 2022, the company listing of all producer appointments in effect, and a statement for renewal fees due, will be provided to companies electronically on the Kansas Insurance Department Company Desktop system.
Beginning in January 2023, appointment renewal notices will be sent electronically to companies via NIPR.
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.
*NIPR SERVICE FOR COMPANIES:
There are various options with different pricing features available to companies to make appointments and appointment terminations through NIPR. Companies should contact firstname.lastname@example.org to discuss available options and determine what services best match a company’s needs.
Company Appointment Report
NIPR’s Company Appointment Report (CAR) allows a company to view a list of all active appointments and/or terminations. This report is company and state-specific and costs $50.00 per report. Companies can only view data for their affiliated companies. Use of a CAR requires a company to sign a license agreement with NIPR.
Producer Database (PDB) Alerts
Companies and other users can subscribe to PDB Alerts which provides notice when information changes in the Producer Database. Users can subscribe to receive changes in licensing, demographics, appointments, and regulatory actions. The alerts are available to subscribers through different delivery methods and at different costs. For more information on PDB Alerts click here. To receive PDB Alerts, a company needs to be a customer of NIPR.
To initiate the contracting process with NIPR for either access to CAR or PDB Alerts, please complete the Producer Database (PDB) Access form and return it to email@example.com. Upon receipt and review, NIPR will provide you with the appropriate license agreement.