The Excess Line Association of New York recently released Bulletin No. 2018-20 as a reminder that all excess line broker business entity licenses expire on October 31, 2018.
Included within the bulletin was an important statement regarding when an entity license is required as opposed to when an individual license can be used. Most notably this notice from New York clearly draws the line stating “when an entity is selling, soliciting or negotiating insurance contracts, gets paid commissions and holds premium trust funds in its name… the entity must be licensed.”
The license referenced in this bulletin is a New York Excess Lines license. However, it articulates a common stance held in many states for both Producer and Surplus Lines entity licenses.
If you have any compliance questions or need licensing support do not hesitate to contact Westmont!
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us at (856)216-0220.