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Creative Compliance FAQ's

  • Does Creative Compliance Hub integration fully with the NIPR?

    Yes. All available NIPR data is fully integrated into your records.

  • How often is NIPR data updated in Creative Compliance Hub?
    Entity and individual producer data is updated each night. This means all your license data in the system is always current and mirrors the information in the PDB.
  • How do I renew agency and individual producer insurance licenses?
     Creative Compliance Hub can obtain new licenses with just a few clicks. Additionally, licenses can be renewed automatically, or with administrative oversight with just a few clicks of a button, whichever you prefer.
  • Can I check to see if my agency, agents and contractors are ready to sell?
    Yes. And it’s important to do so. Your agency is exposed to administrative censure if a placement is made in a state in which it is not actively licensed in the lines of insurance for the insurance being placed.  All independent agency/broker and contractor licensees your agency works with, and anyone involved in the transaction of insurance, needs to be properly licensed.
  • Does Creative Compliance Hub track producer Continuing Education (CE) requirements? Send reminders?
    Yes. Creative Compliance Hub allows for CE to be tracked across all state licenses and for all lines of insurance.  The platform includes a one-click access to our own proprietary, continuously updated database, ComplyINS Sage ™ detailing CE requirement for each state. Creative Compliance Hub also provides automated tracking of producer CE courses taken through seamless integration with WebCE. Creative Compliance Hub can also send automated email reminders to producers at predetermined periods (e.g., 30, 60 and 90 days), as set by the platform administrator, prior to a license renewal deadline. This saves platform administrators significant time chasing down producers to complete required CE.
  • How do you implement system updates resulting from regulatory changes?  
    We roll out regulatory updates to the system continuously, making regulatory changes one less thing for you to worry about.
  • How are Compliance Hub users notified when a system update takes place?  
    A colored bar will appear at top of your home screen notifying you of any system updates.
  • What is an Insurance Agent?  
    Insurance Agents can be classified into two separate categories:  1. Retail Agent; and 2. Wholesale Agent.  A Retail Agent is an insurance licensee who acts as an intermediary between an individual/entity seeking insurance coverage and an insurance carrier to underwrite the insurance coverage sought.  Retail Agents may also work with other intermediaries such as Wholesale Brokers and MGA’s, who have carrier binding authority, to place coverage.  By comparison, a Wholesale Agent does not typically interface with the individual/entity insured directly but rather acts as an intermediary between Retail Agents, in an aggregating capacity, and an insurance carrier or the insurance carriers’ MGA to bind coverage.
  • What is an Insurance Broker
    Insurance Brokers maybe divided into two separate categories: 1. Retail Broker; and 2. Surplus Lines Broker.  A Retail Broker is an intermediary who represents the individual/entity seeking insurance and an insurance carrier, or Carrier’s MGA, to underwrite the insurance coverage sought.  A Surplus Lines Broker is also an intermediary between the insured and the carrier who specializes in the placement of coverage for high value or other risks, which are not readily insurable through the admitted carrier market, with carriers on the states E&S whitelist of approved carriers.
  • What is a Wholesale Agent or Wholesale Broker?

    A wholesale Broker is a type of insurance broker who acts as an intermediary between a retail broker and an insurer, while having no contact with the insured. Wholesale agents place business brought to them by retail agents. Unlike a retail broker, wholesale brokers have direct contact with the insurer, whereas the retail agent who produced the business does not. The same broker can function as a retailer or wholesaler, depending on the specific situation.

    Wholesale brokers often possess specialized expertise in a particular line of coverage or in a line of coverage that is unusual and/or have greater access to or influence with certain insurance markets, which is especially valuable when dealing with a difficult-to-place risk.

    There are two types of wholesale brokers: managing general agents and surplus lines brokers. The latter work with the retail agent and the insurer to obtain coverage for the insured; but unlike a managing general agent, a surplus lines broker does not have binding authority from the insurer.

  • What is a Managing General Agent (MGA) 
    A managed general agent is a specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer. Accordingly, MGAs perform certain functions ordinarily handled only by insurers, such as binding coverage, underwriting and pricing, appointing retail agents within a particular area, and settling claims. Typically, MGAs are involved with unusual lines of coverage, such as professional liability and surplus lines of insurance, in which specialized expertise is required to underwrite the policies. However, MGAs also write some personal lines business, especially in geographically isolated areas (e.g., western Oklahoma, North Dakota) where insurers do not want to set up a branch office. MGAs benefit insurers because the expertise they possess is not always available within the insurer’s home or regional offices and would be more expensive to develop on an in-house basis.
  • What is a TPA and how do they differ from MGAs?
    Insurance Third Party Administrators (TPAs) manage and processing claims on behalf of insurers. Their scope of services can vary, though typically include gathering appropriate information about a claim, determining if the claim is payable, and even paying the claimant on behalf of the insurer. In this capacity, they may function as first-line customer service organizations for insurance companies. Insurance TPAs must have a valid license issued by the state they operate in before they can offer services. This ensures that Insurance TPAs are qualified and knowledgeable about the industry. Licensing also helps protect consumers from any potential fraud or negligence on behalf of the Insurance TPA. Managing General Agents (MGAs) and TPAs have some overlapping roles. The key differentiator is that MGAs help carriers to sell and market their products, while TPAs help with managing and processing claims.
  • What is Reinsurance and what is a Reinsurance Intermediary?
    The simplest way to think about Reinsurance is, “insurance for insurance companies.” More specifically, reinsurance is a contract between an insurance company and reinsurance company; a tool insurance companies use to manage risks and limit the amount of capital required to support those risks. Reinsurers are typically larger, more established companies and they often specialize in particular types of risks or lines of business. Reinsurance Intermediaries act as go-betweens for reinsurers and insurers and are required to be licensed in most states. There are two types of reinsurance intermediaries: intermediary brokers and intermediary managers. An intermediary broker is an entity that solicits, negotiates, or places reinsurance on behalf of a ceding insurer without having the authority to bind reinsurance on behalf of the insurer. By contrast, intermediary managers have binding authority from the reinsurers and in that capacity effectively act as managing general agents or underwriters. Because of their specialized expertise, reinsurance intermediaries often help insurers manage their exposure to catastrophic events or riskier classes of business. This can include setting up a catastrophe fund, transferring certain coverages to reinsurers, or creating excess layers of coverage to protect the insurer’s bottom line.
  • What is an Insurance Aggregator?
    An insurance Aggregator allows business and personal insurance buyers to compare the policies, coverage, and prices of different insurance companies’ offerings in one place. They are usually, but not always online platforms. Aggregators provide an efficient way for consumers to get instant quotes from multiple insurers, allowing them to make informed decisions about purchasing the right policy. Though aggregators do not usually sell insurance directly, they are a type of insurance intermediary and as such need to be licensed by the Department of Insurance in each state in which they operate.
  • What is an Insurance Adjuster?

    An Insurance Adjuster is a professional who helps assess the damages and resulting payments associated with insurance claims. There are three kinds of adjusters: 1) public; 2) independent; and 3) company, or staff adjusters. Public adjusters represent the insured, while independent and staff adjusters represent the insurer. 

    Insurance companies hire adjusters to inspect, evaluate, and talk to people involved in an accident or natural disaster. The adjuster then determines how much money the insurer should pay out on the claim. Nearly all states require that insurance adjusters have a license before they can begin working. In most cases, this involves taking and passing an exam. Continuing Education requirements related to latest regulations, laws and best practices may also be required.

  • What is an Insurance Carrier or Insurance Company?

    Insurance carriers are companies that provide products (policies) that cover a single specific risk or a number of specific risks, under agreed terms and conditions. The three most common types of insurance companies are Standard Line Carriers, Surplus Lines Carriers and Captive Carriers. A Standard Line Carrier sells insurance policies such as life, health, auto, and home insurance to the general public. A Surplus Line Carrier specializes in providing coverage for higher-risk customers. And a Captive Carrier is an insurer owned by a larger company which provides insurance only for that company’s employees or products.

    In all cases, carriers assess the risks of insuring customers and determine the associated premiums. They also pay out benefits to customers who file claims for covered losses, either directly or through an intermediary such as a Managed General Agent (MGA) or Third-Party Administrator (TPA). Insurance is a highly regulated industry and carriers must be licensed in each state in which they operate, and follow many federal and state laws and regulations.