Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-109 - CONTINUATION OF APPOINTMENTS FOR PRODUCERS AND SERVICE REPRESENTATIVES › Section 482-1-109-.05 - Continuation Of Appointments Of Producers And Service Representatives

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Insurers can
			 access an alphabetical listing by insurer of all producers and service
			 representatives currently appointed to represent each insurer in this state
			 through the National Insurance Producer Registry (NIPR).
(2) The Department will send to the
			 designated contact person for each insurer on or about October 1 of each year
			 detailed instructions as to the procedure to be followed relative to the
			 appointment continuation process of producers and service representatives.
			 These instructions will include a reminder that insurers must submit to the
			 Department a notice of termination for all producer and service representative
			 appointments they do not wish to continue for the next year by December 31 of
			 each year.
(3) For each producer or
			 service representative appointment to be terminated, the insurer shall comply
			 with the Department's procedures regarding termination of appointments, as said
			 procedure may be hereafter altered or amended.
(4) The Department will assume an insurer's
			 failure to submit a notice of termination prior to December 31 means the
			 insurer wishes to renew all producer and service representative appointments
			 shown on the Department's listing for the insurer as of that date for the
			 coming year. All producer and service representative appointments not
			 terminated on or before December 31 shall be deemed continued effective January
			 1.
(5) Any notice of appointment or
			 termination submitted after December 31 will be held by NIPR until January 12.
			 The license of any licensee failing to renew in accordance with Chapter
			 482-1-110 will expire and be canceled prior to January 5 and all appointments
			 then held will be canceled.
(6) On
			 or about January 5 of each year, an invoice will be prepared for each insurer
			 by NIPR for the appointment fees of all producers and service representatives
			 deemed continued as provided in this rule. This invoice will be made available
			 to insurers through NIPR on January 9 and shall be due in the amount indicated
			 until the end of February.
(7) It
			 is the insurer's responsibility to pay the appointment continuation invoice
			 through NIPR prior to the end of February. Any appointment continuation invoice
			 not paid in full by March 1 will be subject to a late fee of $250, plus an
			 additional $250 on the first of each month thereafter until paid in
			 full.
(8) In accordance with
			 Sections 27-3-21(a) and
			 27-2-17(e),
Code of Ala. 1975
, the Commissioner has discretion to
			 suspend or revoke an insurer's certificate of authority for willfully violating
			 a material provision of a rule or regulation. Any insurer failing to remit
			 payment of the invoice for appointment continuation fees provided pursuant to
			 this rule plus an applicable late fee shall be subject to an order requiring
			 the insurer to show good cause as to why the certificate of authority for the
			 insurer should not be suspended for its failure to remit payment of the invoice
			 for appointment continuation fees.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-7-30,
				  27-7-43.