New Jersey Department of Banking and Insurance Alerts Insurers of Producer Appointment Renewal Procedures Outlined in N.J.A.C. 11:17-2.9

The New Jersey Department of Banking and Insurance issued a bulletin on March 21, 2011 to alert insurers of the producer-related appointment renewal process outlined in New Jersey Administrative Code 11.17-2.9. 

The complete bulletin is reprinted below and can also be accessed by clicking here.

BULLETIN NO. 11-06

TO:  ALL INSURERS TRANSACTING BUSINESS IN THIS STATE
FROM: THOMAS B. CONSIDINE, COMMISSIONER
RE: PRODUCER APPOINTMENT PROCEDURES

The purpose of this Bulletin is to ensure that insurers are aware of the producer appointment renewal procedures outlined in N.J.A.C. 11:17-2.9. 

Pursuant to N.J.A.C. 11:17-2.9(a)5, producer appointment notifications shall be renewed with the Department of Banking and Insurance (“Department”) annually on May 1. Insurers shall utilize the online appointment renewal process available through the National Insurance Producer Registry (“NIPR”). The rule further provides that the renewal appointment fee as set forth in N.J.A.C. 11:17-2.12 shall be collected from the insurer. All active appointments on record with the Department as of April 1 of the same year shall be subject to renewal.

Commencing on April 5, 2011, the NIPR website at www.nipr.com will contain the renewal invoices and listings of appointments due for renewal on May 1, 2011. The invoices will not be displayed on the NIPR website after close of business (5:00PM EDT) Tuesday, May 31, 2011 and those appointments will not renew. Prior to March 25, 2011, insurers that subscribe to NIPR or contract through an NIPR Authorized Business Partner may obtain a listing of the appointments currently on record with the Department and terminate any appointments listed that are no longer active via the Company Appointment Reconciliation Report (“CARR”) available on the NIPR website. If you do not have a subscription to the NIPR CARR or do not utilize the services of an Authorized Business Partner, you may contact NIPR at 816-783-8467 or marketing@nipr.com for a subscription or a list of Authorized Business Partners.

Insurers are reminded that all agency terminations must be posted on NIPR’s producer database before 5:00 PM EDT on March 25, 2011 or they will be included on the renewal invoice. The renewal invoice cannot be altered and the company must provide payment for the full amount billed. Appointments added on or after April 1, 2011 will not need to be renewed in 2011 and will not be reflected on the renewal invoice or list of appointment renewals due.

The appointment renewal process beginning April 5, 2011, when the electronic invoices will be available on the website is as follows:

1. On the Internet, go to www.nipr.com.
2.  Follow the links to company appointment renewals and sign-in using your company identifiers: company NAIC number, FEIN, and/or company name.
3.  After entering the necessary identifying information, the company may: 
   •  View the detail report of appointment renewals;
   •  Print the Report;
   •  Download the Report as text (delimited);
   •  Download the Report as XML; and
   •  Make electronic payment.

Payment must be made online via credit card or electronic check (paper check payment is not available.) To use the NIPR electronic “Pay by Check” payment option, authorization by your financial institution may be required. NIPR recommends that you:

• Verify with your bank if your account will need a pre-authorization to use this electronic check service before submitting your appointment renewal.
•  Verify that both the person responsible for making the payment and your accounting department are aware of the payment amount.
• Provide your bank with the NIPR ACH ID number which is: 9431763793 as well as their company name ‘NIPR’.
• It should be noted that help screens and NIPR Customer Support are available to guide your staff through the process.

Questions regarding the electronic appointment renewal process or electronic payments should be directed to: NIPR Customer Service at 816-783-8468 or customerservice@nipr.com. Questions regarding specific appointment matters or termination of appointments as a result of failure to timely pay may be directed to Anne Marie Narcini, Chief of Market Regulation and Consumer Protection, New Jersey Department of Banking and Insurance at: annemarie.narcini@dobi.state.nj.us

Should you have any comments or questions, please contact Colodny Fass.