A company is required to certify each producer or agency that will transact Kansas insurance business on its behalf. Certification must be submitted to the Kansas Insurance Department within 30 working days of appointment. Failure to appoint within the required time will subject the company to a monetary penalty. Certification of an agency will automatically include each licensed insurance producer associated with the business entity for the kinds of insurance permitted under the license in effect for the producer.
The nonrefundable certification fees are $2 for each producer or agency appointed by a Kansas-domiciled company and $5 for each producer or agency appointed by a foreign-domiciled company. Companies will be billed monthly for these fees.
Certification may be submitted electronically through the National Insurance Producer Registry. Companies may also contact the Producer Licensing Division to request the Kansas Insurance Department Company Appointment/Cancellation Form. The use of this form is limited to insurance company personnel.
Termination Of Company Certification
If a company wishes to cancel a producer or agency certification, it must submit the required form within 30 days of the date of termination of the business relationship. No fees are required. The company is responsible for notifying the producer and/or agency of the termination.
Producer appointments obtained through agency affiliation will terminate if the individual’s association with the agency ends. Companies may not selectively terminate such producer appointments while the individual is still affiliated with the certified agency. If an agency appointment is canceled, an appointment for each affiliated producer will terminate as well.
Cancellation may be submitted electronically through the National Insurance Producer Registry. Companies may also contact the Producer Licensing Division to request the Kansas Insurance Department Company Appointment/Cancellation Form. The use of this form is limited to insurance company personnel.
Company certifications are renewed annually on January 1. At that time, the company listing of all producer and agency appointments in effect, a list of appointments canceled during the previous calendar year, 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 IN THIS OFFICE ON OR BEFORE MARCH 1. Payment should be remitted in the EXACT amount shown on the statement. The company’s canceled check will be verification that renewals were paid.
- The renewal list should be reviewed very carefully and any discrepancies reported. Appointments are arranged on the list in the following order:
- nonresident agencies with affiliated producers,
- resident agencies with affiliated producers,
- individual nonresident producers,
- individual resident producers.
- If it appears that a producer or agency appointment has been listed in error, send a request for review of the company’s appointment records. The request should include the producer or agency name, the identification number, and an explanation regarding the error. We will advise you of our findings and will refund any renewal fee that was billed in error. (NOTE: When certifying an agency, all qualified producers in that agency will also be certified.)
- If it appears that a producer or agency appointment has been omitted from the list, the listing of cancellations should be reviewed to determine if a termination request was submitted and company records were not updated. If the appointment has not been canceled, please send an appointment form and a letter of explanation. Upon review of the company’s records, we will process the renewal or return the appointment form and advise regarding our findings.
It is the company’s responsibility to review the renewal list for any agencies without affiliated producers. Unless the agency sells credit life only or is an auto rental agency only, there must be one or more producers under the agency listing who are certified for the lines of insurance being sold. If there are no qualified producers, the agency should be contacted so that they may license and/or submit an AG11 form to add an producer with the appropriate qualifications. If this is not possible, the agency appointment must be canceled. The agency cannot produce any Kansas business until a qualified producer is affiliated with the agency.