Pennsylvania Code
Title 31 - INSURANCE
Part I - General Provisions
Subpart C - Agents and Brokers
Chapter 37 - AGENT CERTIFICATES OF QUALIFICATION AND BROKER LICENSES
RESPONSIBILITIES OF INSURANCE ENTITIES
Section 37.61 - Appointments and termination by entity
Universal Citation: 31 PA Code ยง 37.61
Current through Register Vol. 54, No. 44, November 2, 2024
(a) A certificate does not permit a person to act as an agent. To complete the certificate process to act as an agent, a person shall secure a written appointment from each sponsoring entity.
(1) An insurance entity shall make
appointments of agents in writing to the agent.
(2) If an entity enters into a contract with
the agent, the effective date of the appointment shall be the same as the
effective date of the contract.
(3)
An insurance entity's appointment form shall contain at least the following:
(i) The effective date of the
appointment.
(ii) The lines of
authority conferred.
(iii) The name
and address of the appointee, and any fictitious name currently used by
appointee.
(iv) The appointee's
certificate number.
(v) The names
and certificate numbers of qualifying active partners, if the appointee is a
partnership, or qualifying active officers, if the appointee is a
corporation.
(vi) The appointee's
Social Security number or tax identification number.
(vii) A list of companies and insurer
numbers, if fleet appointment.
(4) Appointment activity by an entity for
existing certificate holders shall be reported to the Department on a monthly
basis. The report shall be in a format approved by the Department. The report
shall be filed within 30 days of the end of the month being reported.
(5) Appointment records, including a
demonstration of the reasonable inquiry conducted by the entity as required in
§
37.62(b)(1)
(relating to certification of appointments by entities), shall be made
available for Department inspection upon demand. Both the entity and appointee
shall maintain records of the appointment during the appointment period and for
5 years following expiration or termination of the appointment. The records may
be maintained on a regional basis if the entity designates a single contact
person for each reporting region.
(b) An entity may terminate an agent's appointment.
(1) Terminations shall be in
writing and sent to the agent prior to notification of termination to the
Department.
(2) If an entity has
entered into a contract with the agent, the termination date of the appointment
shall be the same as the termination date of the contract.
(3) The termination notice to the agent shall
contain at least the following:
(i) The name
of the entity for which the agent is being terminated.
(ii) The effective date of
termination.
(iii) The lines of
authority terminated.
(iv) The name
and address of terminated appointee, including fictitious names used by
appointee.
(v) The certificate
number of the terminated appointee.
(vi) The Social Security number or tax
identification number of the terminated appointee.
(vii) The names of qualifying active partners
or qualifying active officers, if the terminated appointee is a partnership or
corporation.
(4)
Termination activity by an entity shall be reported to the Department on a
monthly basis. The report shall be in a format approved by the Department. The
report shall be filed within 30 days of the end of the month being
reported.
(5) Termination initiated
by an appointee shall be confirmed by an entity in its termination form and
reported to the Department as required by this section.
(6) An entity shall maintain termination
records for 5 years after termination is effective.
(7) When a termination of an appointee is for
cause, the entity shall document its reasons for termination to the attention
of Chief, Bureau of Enforcement, Insurance Department, Harrisburg, Pennsylvania
17120.
(8) If an appointment has
been terminated on the records of the Department, it may not be revived. The
company shall issue a new appointment with a new effective date in the standard
appointment format.
(9) An entity
shall file a termination of an appointment when the agent ceases performing the
activities of an agent for the entity.
(c) Appointment and termination records required under this section may be maintained in the form of electronic paperless filing systems in accordance with guidelines for record retention developed and distributed by the Department.
This section cited in 31 Pa. Code § 37.45 (relating to contractual relationship of brokers and agents); and 31 Pa. Code §39.6 (relating to sponsors).
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