Binding Authority - License Required?

[Pamchi]

Hello,

I am new to the forum and did a lengthy search and gave up - hope someone can help answer a question:

Does state law address whether or not unlicensed personnel at an agency can be given binding authority by a carrier?

It is an agency in Wisconsin, so I've checked the WI Insurance Statutes and could not find the answer there, nor the DOI website.

I've been in P&C for a long time, just not at the agency level, so I do know that UW's actually working for the carrier don't need to be licensed, though I do think this is because they don't deal direct with the insured.

I can't locate a single statute in WI regarding binding authority, only that personnel in an agency have to be licensed to perform certain functions. Beyond that, nothing more specific.

If anyone has any knowledge of this generally, please feel free to add any info at all - it will be helpful.

Thank you!

 

[Guest]

no one relied to this because it is such a stupid question.

What do you think the point of getting licensed is?

 

[djs]

To be honest though, I know that as an agent with binding authority, I have to be licensed.

An underwriter? Someone who sits in an office all day, looks at paperwork and makes policy decisions? I have no idea if they have to be licensed. They are not involved in the sales process at all, the license is actually to solicit.

I would assume that carriers have their underwriters licensed, but even as an agency, I can have an unlicensed CSR do underwriting for me, but they can't bind. Yes, they can pull clue reports, public record info, DMV records, even drive by a house and take pictures.

Ironically, this is not a question that I really care what the answer is....

Dan

 

[Bertolinoins]

To transact business with retail clients you need to be licensed.

 

[STIBROKER]

no one relied to this because it is such a stupid question.

What do you think the point of getting licensed is?

 

[Pamchi]

It seems to me that a lot of the smaller agencies run with staff who have no training, no education and that do work they shouldn't because they don't have a license.

The rudeness of Red Blooded American is really uncalled for - are you some kind of forum bully? A bit of advice for you: if you can't say anything nice, don't say anything at all.

I had to ask because my boss is letting a coworker function as an agent and she failed her test, but no matter! She's working as if she had one and he isn't there all day to supervise. She struggles to answer simple coverage questions - I mean simple! - and cost our agency $10K in a claim b/c she was "too busy" to request a property endorsement.

This is the scary stuff I'm dealing with - to think that an actual MGA or insurance company would allow her binding authority is actually something that could happen.

I would think that they would want that person to be licensed and while I know it is law in most states, in practice, I think there are a greater deal of staff functioning in insurance doing things that you should, by law - and for good reason - have a license to do.

Anyway, I guess no one really cares about the law here, so thank you, at least for the constructive replies.

 

[Guest]

I'm not being shitty, Anyone in this business should know that unless you are licensed, you have certain things you can or cant dicuss, such as coverages.....

There is a difference between an agent and a CSR, not putting anyone down, but that is a job classification.

I know the DOI does go around "testing" agencies and the fines are HUGE if hte un-licensed person is dicussing things they shouldnt be.

I personally feel the only people in an insurance office that should NOT be licensed are a telemarketer and a person that does direct mail.

My CSR's are always licensed, if it is a current employee wanting to move up, then I will pay for the license and testing, etc.

I know in my state, which obvioulsy will differ than other states, a NON-Licensed person cant discuss coverages, make changes on a policy etc.

Hence my PREFERENCE everyone in the office that CAN have any contact with a client or prospect that they have a license.

I only write P&C also....