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Producer/Adjuster Licensing FAQs

GENERAL AND APPLICATION INFORMATION

What is a producer?

A producer is any person or entity required to be licensed under the laws of Idaho to sell, solicit, negotiate, consult, or advise with regard to insurance. The term, “producer” replaces any previous reference to agents or brokers. All agent and broker licenses for both resident and non-resident have been replaced with the new ”producer” license, effective July 1, 2001.

What are the definitions of sell, solicit and negotiate?

The terms sell, solicit and negotiate are used throughout the new licensing laws and are used to determine when a license is required. The terms are defined as follows:

  • Sell – To exchange a contract of insurance by any means for money or its equivalent on behalf of an insurance company.
  • Solicit – Attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. To advertise as an agent or agency to sell insurance.
  • Negotiate – The act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contact of insurance concerning any of the substantive benefits, terms or conditions of the contract if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.

Who needs to be licensed?

All individuals and business entities, resident or non-resident, who sell, solicit or negotiate insurance in the State of Idaho, must be licensed for any class or classes of insurance. Any business entity whose producers are acting under the entity's name must be licensed.

Who is exempt from licensing?

Per Idaho Code 41-1005, Exceptions to Licensing:

(2) A license as an insurance producer shall not be required of the following:

(a) An officer, director or employee of an insurer or of an insurance producer, provided that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and:

(i) The activities of the officer, director or employee are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; or
(ii) The function of the officer, director or employee relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
(iii) The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance;

(b) A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance, or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans, or performs administrative services relating to mass-marketed property and casualty insurance, and who does not receive a commission; (c) An employer or association or its officers, directors, employees or the trustees of an employee trust plan, to the extent that the employer, association, officer, employee, director or trustee is engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which involves the use of insurance issued by an insurer, as long as the employer, association, officer, director, employee or trustee is not in any manner compensated, directly or indirectly, by the company issuing the contracts;
(d) Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers, and who are not individually engaged in the sale, solicitation or negotiation of insurance, and who do not receive a commission;
(e) A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, provided that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state;
(f) A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one (1) state insured under that contract, provided that the person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state;
(g) A salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission; or (h) A person who, concurrent with the rental of a motor vehicle, provides contract options to the standard rental agreement which provides auto and travel related coverage through authorized insurers during a rental period not to exceed ninety (90) days.

Does Idaho require fingerprinting?

Residents only, at this time, must fingerprint at the time of testing for an initial license through Pearson Vue. You do not need to re-fingerprint when adding lines to a license . You will need to re-fingerprint if your license has been lapsed for over one year and you are reapplying.

Do non-residents need to submit a letter of certification with a paper application?

We will check the PDB (Producer DataBase) for license information on non-resident paper applications. if the license information is listed for your domicile state, we will not require a letter of certification. NOTE : if you are applying for a Variable line and your state does not list this line of authority, please send CRD report or list CRD number on application or add-lines form. if your state does not show Surplus Lines on the PDB, please send certification that you are licensed for Surplus Lines in your state.

How do I cancel my producer license?

  • A business may send the same request for cancellation of the agency license if signed by an officer of the firm.
  • Current license copy or loss of license affidavit must accompany this request.

Licensing fees?

Please check our fee schedule or find the license type in our producer page and the fee will be listed in the information for that license.

How do I become licensed in Idaho as a resident?

Resident individuals must first test for the line(s) of insurance they wish to sell. Pearson Vue is our testing agency. Please contact them at 888-204-6218 to book exam(s) and fingerprints. For paper applications, please attach original exam pass slips and fingerprint receipt to the application for individual, along with check or money order made payable to Idaho Department of insurance for $80 and send to: Idaho Department of Insurance, PO Box 83720, Boise, ID 83720-0043. Or you may apply electronically via Sircon or NIPR. Business agencies may use the Uniform Application for business entity or apply online through Sircon or NIPR. Fee to license is $80. You must list a designated producer who is currently licensed in Idaho or submit both applications by paper at the same time.  Recommendation:  If you need to license both individual and agency, use paper applications.

How do I become licensed in Idaho as a non-resident?

Two options are available for non-residents to license in Idaho for insurance:

  • Paper application may be submitted with fee. Non-resident application for individual or business entity can be found on our website, along with instructions.
  • Electronic applications must be done through NIPR or Sircon. Fee will include state fee and electronic processing fee and must be paid via credit card. The following licenses may not be applied for electronically at this time:

    • Title Agency
    • TPA
    • MGA
    • Reinsurance intermediary

The following lines of authority are available through electronic processing:

    • Property
    • Casualty
    • Life
    • Disability
    • Variable
    • Personal lines
    • Credit
    • Crop
    • Surety
    • Pet
    • Travel
    • Public Adjuster (via Sircon only)
    • Independent Adjuster (via Sircon only)

NOTE: We recommend adding lines via paper form. There is no fee to add lines. You may use our add lines form.

LICENSE TYPES

Does Idaho license independent adjusters?

Yes. Residents may test for crop/hail, worker's compensation, or general lines adjuster licenses. Idaho will consult the PDB regarding license information for non-residents. Non-resident adjusters may be licensed in a state other than their domicile state.  See the independent adjuster page for more information and forms.

Does Idaho license public adjusters?

Yes, as of July 1, 2008. See the public adjuster page for more information and forms.

Does Idaho license consultants and brokers?

No, the consultant and broker licenses were changed to a Producer license, effective 7/01/01. Producers may act as brokers or consultants. Brokers and consultants must have a Producer license.

Does Idaho cover the surety line under a property and casualty license?

No. As of 2001, in conjunction with the Model Law of NAIC, we do not grant the Surety Line as a sub-line of the Property/Casualty license. Residents must test for Surety and Non-residents will need to show the line separately or show proof that their state carries the line under the Property/Casualty lines of authority before adding this to a P&C license. It is not necessary to show the line specifically on a non-resident license if the domicile state recognizes the line as part of the Property/Casualty lines. Idaho will be reciprocal in this case.

APPOINTMENTS

Does Idaho require an appointment or registration upon licensure?

No. We will license an individual without a sponsoring company or agency affiliation. Companies have 15 days from date a contract of insurance is submitted to appoint a producer. Otherwise, producers must be licensed and, if acting for a company, the producer must be appointed. A producer can be associated with an agency and act under the agency's appointment. Businesses must have at least one Idaho-licensed, registered producer who carries the lines of authority of the business. Producers are not required to be registered to their agency.

How do I submit an appointment?

Companies are required to process appointments electronically through NIPR or Sircon. Be sure that our system records have an FEIN for your company before submitting appointments electronically. Use the name of the company and appointee exactly as they are listed on our website. There is no fee from the state for appointments, however, there will be an electronic processing fee. Paper appointments may be attached to initial paper applications. If there are difficulties with electronic appointment processing, you may contact the department for help or send a paper form via fax: 208-334-4398 with the NIPR or Sircon rejection information attached.

Do appointments need to be renewed?

No. Idaho does not charge a fee for appointments or require appointment renewal. An appointment is perpetual until terminated or the license has lapsed. Licensed reinstated will not have appointments automatically reinstated.

How does a producer/company terminate an appointment?

A producer may go to our website and download the termination of appointment form and fill it out and fax to 208-334-4398. Companies must process terminations electronically through NIPR or Sircon. There is no state fee to terminate an appointment. if terminating for cause, a notification, explanation and pertinent documents must be sent to the Department. Contact Licensing: 208-334-4250 if you have questions regarding this requirement. NOTE: terminations cannot be back-dated more than 30 days.

MISCELLANEOUS SERVICES

How do I add a line of authority to my license?

Go to our website and download the add lines form. Complete this form and fax or mail to us. We will add the line and send a revised license copy. There is no fee for this transaction.

How do I get a list of producers for your state?

Go to our website and download the list request form. Fill it out and send with fee ($9.75).  We only provide a mailing address.  No phone, e-mail or appointment information is given on this list.

STATE-TO-STATE CHANGE OF ADDRESS

How do I report a change of domicile State to Idaho?

You must be licensed in the new domicile state before reporting the change to Idaho. We do not require a letter of certification but the new information must be listed on the PDB at the time we receive the request to change the address. Please send change of address form with new information. We will make the change and send a revised copy.

If I am moving to Idaho, how do I license as a resident?

If coming from another state in which you were licensed as a resident, you will need to cancel the former domicile license and submit an application and $80, along with a receipt for fingerprints from Pearson Vue (call 888-204-6218 – ask for the “non-testing fingerprint exam”—get the receipt when you have done the fingerprints). You must do this within a 90-day period of moving to Idaho. Once licensed as a resident, you may reinstate your license in the former domicile state as a non-resident. If you currently carry a non-resident license in Idaho, be sure to return the license copy with your application and include a request to cancel this license so that you may relicense as a resident. We will issue a new license number in connection with this conversion so that you will not be due the CE for a two-year period.

If I am moving from Idaho to another state, what do I need to do?

You will need to surrender your original, current license with a request for letter of clearance form from our website attached. NOTE : Once this letter of Clearance is issued, your Idaho license will be inactivated until you have reinstated as a non-resident. Once licensed in the new domicile state as a resident, if you wish to reinstate your Idaho license as a non-resident, send a reactivation form from our website. We will send you a revised license copy. There is no fee for either transaction. DO NOT ATTEMPT TO REINSTATE THIS LICENSE BY GOING TO THE NIPR WEBSITE AND REAPPLYING ELECTRONICALLY.

Can a non-resident apply as a resident?

In cases where you reside in another (bordering) state and do all your business in Idaho, you may apply as a resident. You must not hold a resident license elsewhere. You will be required to test for Idaho and fingerprint and send application with cover letter explaining your circumstances and justifying your decision to apply as a resident. in this scenario, you must supply a valid business address in Idaho on the application.

RENEWAL

How often does my license renew?

Every two years from date of issue for agencies and every two years by the end of the birth month for individuals.

What if I do not receive a renewal notice?

Idaho will soon have email as well as postcard renewal notices. These notifications are a courtesy of the department and whether or not you have received your notice, you are responsible for the timely renewal of your license . Make sure that your email and mailing address are current at all times to help expedite this notification process. You are responsible for tracking your CE, completing your CE before renewal and processing renewal in the 6 weeks prior to your expiration. We recommend attempting to renew at least 2 weeks prior to your expiration date, at the latest, in the event the system is not available or there are problems with your renewal. Your license expiration date is the date the license is expired and late renewal fees will apply if renewing on or past this date.

How do I reinstate my license?

Please go to producer license reinstatement and find the appropriate form. This form includes instructions and fee information. Forward to the department with the appropriate fee.

CONTINUING EDUCATION

How much CE is due at renewal?

Idaho requires 24 hrs CE per producer, every 2 years at the time of renewal. This total must include a minimum of 3 hours of law/ethics credits. Federal law mandates 8 hours initial training and 3 hours for every renewal period of Long Term Care Partnership credits for anyone selling Long Term Care products and an initial 4 hours of Flood insurance for anyone selling or offering Flood insurance. See our website under CE course catalog for approved courses.

Who is exempt from CE

  • Independent Adjusters
  • Surplus Lines
  • Limited Lines
  • Non-residents

Is there carry-over for unused credits from one renewal period to the next?

No. We do not allow carry-over of unused credits.

Does Idaho track my CE credits?

Yes. Please watch this short video regarding How to Look up Your Continuing Education Transcript to find out how to look up your accumulated credits. (CE transcript inquiry)

What happens if I am late with my CE credits?

  • CE completed in the 1st 30 days past expiration incurs a late penalty fee of $100
  • CE completed in the range of 30- 60 days past expiration incurs a late penalty fee of $200
  • CE completed in the range of 60-90 days past expiration incurs a late penalty fee of $300
  • After 90 days and up to 1 year, licensee must retest and reapply and turn in 24 hrs of CE – fee $80
  • After 1 year, licensee must retest and reapply – fee $80

How do I know if a course is approved for Idaho CE?

Consult our website and look under our CE course catalog for all Idaho-approved CE courses. Courses that are also approved for law or ethics will be marked with a red asterisk. Idaho approves classroom, correspondence and internet courses. Our general catalog lists courses by Provider or Category and study method.

INACTIVE STATUS

Does Idaho have an inactive status?

Yes. Idaho allows a producer who is retiring or has a long term disability, but wishes to keep their license, to go on “inactive status.” in this status, a producer may not handle any insurance business. This status exempts a producer from having to turn in CE but not from having to renew their license. Producers must petition the state for this status. The inactive status request form can be found on our website. Producers wishing to reactivate their license must use the reactivation form from our website. Twenty hours of CE must be submitted to reactivate the license.

Does Idaho have a special military inactive status?

Yes. Idaho allows any producer called to active duty to request military inactive status. in this status, a producer may not handle any insurance business. This status exempts a producer form having to turn in CE and from having to renew their license during the time of active duty. You may notify the department of the need to be put into this status by using the military inactive status forms on our website. Reactivation requires the military reactivation form. Renewal fee and pro-rated CE will be due upon the next renewal period after active duty ends.