Horizon Brokerage Partners operates as a licensed business entity insurance producer. On May 1st, the agency's designated responsible licensed producer (DRLP)—the individual who ensures the firm's compliance with state insurance laws—unexpectedly retires and surrenders their resident producer license. To maintain the business entity's license in good standing, which of the following actions must the agency take?
- Promptly designate a new licensed individual producer to act as the DRLP and notify the Department of Insurance.Answer
- BObtain a temporary producer license for an unlicensed corporate officer to fill the compliance role for up to 180 days.
- CWait until the business entity's next biennial renewal date to officially update the designated producer information.
- DImmediately cease all agency operations and submit a completely new business entity license application to the state.
Answer
The agency must designate a new licensed individual producer to act as the DRLP and notify the Department of Insurance.
To operate legally, a business entity must hold a producer license, which is contingent upon having a designated responsible licensed producer (DRLP). This individual ensures the agency follows all state insurance laws. If the DRLP retires, dies, or loses their license, the business entity must promptly designate a new licensed individual and notify the Department of Insurance to maintain active, compliant status.
Step-by-Step Solution
Key Concept
Business Entity License Maintenance and DRLP Requirements