Company Appointment (Certification)

Company Appointment

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.

The CAR is normally available through NIPR for a $50 fee. NIPR is extending a one-time courtesy to companies to view their CAR for the state of Kansas at no cost. Normally access to the report also requires the company to be a customer of NIPR but this requirement is waived through August 31, 2021. Companies that want to request their complimentary CAR should contact acward@nipr.com and provide the following information with their request: NAIC CoCode, FEIN, Company Name. After September 1, 2021, NIPR will return to its normal procedure of having a company become an NIPR customer and pay the $50.00 CAR fee.

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 through NIPR 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.

Appointment Renewals

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.

*NIPR service for companies:

NIPR offers a front-end application, Interactive Appointments & Terminations (IAT), for electronic submission of appointments and terminations. Use of IAT does require your company to sign a license agreement with NIPR. There are no setup fees, membership fees, or minimum usage requirements to become a customer.  However, NIPR does charge a minimal per transaction fee for services.
IAT allows carriers to appoint or terminate using the National Producer Number (NPN), eliminating the use of the SSN. The cost is $3 per transaction plus any associated state fees. Fees must be paid at the time of processing via credit card or electronic check.

To initiate the contracting process with NIPR, please complete the Producer Database (PDB) Access form and return it to marketing@nipr.com. This provides basic information about your company, determines what services best match your needs, and confirms your permissible purpose. Upon receipt and review, NIPR will provide you with the appropriate license agreement.

COMPANY APPOINTMENT REPORT

Exclusively designed for the insurance carrier, 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 CAR does require your company to sign a license agreement with NIPR. There are no setup fees, membership fees, or minimum usage requirements to become a customer.  However, NIPR does charge a minimal per transaction fee for services.

To initiate the contracting process with NIPR, please complete the Producer Database (PDB) Access form and return it to marketing@nipr.com. This provides basic information about your company, determines what services best match your needs, and confirms your permissible purpose. Upon receipt and review, NIPR will provide you with the appropriate license agreement.

Contact NIPR at marketing@nipr.com for information on various options for conducting filings through NIPR.