New Changes and Mandatory Requirements for Individuals and Business Entities Due to The Transition to NAIC’s State Based System (SBS)

DAVID Y. IGE GOVERNOR JOSH GREEN LIEUTENANT GOVERNOR STATE OF HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS INSURANCE DIVISION 335 MERCHANT STREET, ROOM 213, HONOLULU, HAWAII 96813 P.O. BOX 3614, HONOLULU, HAWAII 96811 Phone Number: (808) 586-2790 Fax Number: (808) 587-6714 insurance.hawaii.gov CATHERINE P. AWAKUNI COLÓN DIRECTOR JO ANN M. UCHIDA TAKEUCHI DEPUTY DIRECTOR COLIN M. HAYASHIDA INSURANCE COMMISSIONER October 12, 2022 MEMORANDUM 2022-10LIC TO: All Insurers, Licensees, Registrants, Continuing Education (“CE”) Providers FROM: Colin M. Hayashida Insurance Commissioner SUBJECT: New Changes and Mandatory Requirements for Individuals and Business Entities Due to The Transition to NAIC’s State Based System (SBS) The Insurance Licensing Branch is currently transitioning to SBS. Once SBS is implemented and functional, all licenses and registrations submissions must be done online via NAIC’s National Insurance Producer Registry (NIPR). The scheduled implementation date is November 15, 2022. Beginning November 16, 2022, the following must be submitted online via NIPR: all Hawaii individual and business entity licenses and registrations for new, renewal, late renewal, reinstatement, appointments, and termination of appointments; adding a class/line of authority; address changes (for Individual only); and CE providers and course submissions (new and renewal). Below are the new changes with descriptions and instructions due to the transition to SBS: • Key Dates and Times: Monday, October 10th at 4:30 pm (HST) – Licensing Branch will stop processing paper application for CE new providers or new courses. Applications may be submitted via NIPR beginning November 16th. Tuesday, November 1st at 4:30 pm (HST) – Licensing Branch will stop processing NAIC approved CE courses. CE applications may be submitted via SBS beginning November 16th. MEMORANDUM 2022-10LIC October 12, 2022 Page 2 of 3 Tuesday, November 8th at 10 pm CST (5 pm HST) - NIPR will shut down accepting any online applications for Hawaii. Tuesday, November 8th at 11:59 pm (HST) – Hawaii local vendor “Hawaii Information Consortium” (“HIC”) will discontinue the renewal services and the CE course and credit submission. Wednesday, November 9th at 4:30 pm (HST) – Licensing Branch will stop processing individual and business entity paper applications and amendments. Tuesday, November 15th at 11:59 pm (HST) – HIC will discontinue all other services with the Hawaii Insurance Division. Wednesday, November 16th at 8 am (HST) – SBS External Applications go live. Wednesday, November 16th at 9 am (HST) - NIPR begins accepting all online submissions for new, renewal, late renewal, and reinstatement. • National Producer Number (NPN): All individual and current business entity license numbers are changing to NPN. • Fees: The fees based on the amended Hawaii Administrative Rules (“HAR”) will be implemented when SBS goes live. See Commissioner’s Memorandum 2021-14LIC for more information regarding fees. • Renewals: Beginning November 16, 2022, all licenses and registrations must renew online via NIPR. Upon first renewal in NIPR, all individual and business entity licenses and registrations expiration/renewal dates will be automatically moved to the last date of the birth month (individual) or last date of the date certain (business entity if applicable). • DRLP Affiliation: Required only when a resident business entity insurance producer license applicant answers “Yes” to a non-uniform background question on the online application. Go to https://cca.hawaii.gov/ins/producers/forms/ and submit Form Affiliation for DRLP for approval. • Agency with No Designated Representative Licensed Producer (“DRLP”): Agency license will be automatically changed to “Cancelled” status. The agency has 30 days from the date the agency license status turns into “Cancelled” to submit Form ADR for approval. Once approved, your license status may be changed from “Expired” to “Active’. If Form ADR is not received and approved within 30 days, the agency license will automatically be changed to “Inactive” status and the agency would have to reapply as a new applicant via NIPR. • Trade/DBA Name: Cannot be done online. See https://cca.hawaii.gov/ins/producers/instructions_insurance_license/ for instructions regarding how to add a Trade/DBS Name to your license. • Limited Lines: All travel related LOAs will be grouped under one LOA “Travel”. All credit related LOAs will be grouped under one LOA “Credit”. All car rental related LOAs will be grouped under one LOA “Car Rental”. MEMORANDUM 2022-10LIC October 12, 2022 Page 3 of 3 • CE: All licensees requiring Continuing Education (CE) when renewing their Hawaii insurance licenses must be CE Compliant before submitting their renewal application via NIPR. To verify CE credits, go to: https://sbs.naic.org/solar-externallookup/license-manager. • NIPR Attachment Warehouse: You must submit all required documents via NIPR’s attachment warehouse. Go to Hawaii / Resident Licensing / Business | NIPR to review the required forms/ document(s) that must be submitted within 7 days along with the submission of your online application. An application will be “rejected” if all required form(s)/documents(s) are not submitted within 7 days of the online application submittal. • No Refund: All fees and penalties are nonrefundable. Refer to Hawaii Revised Status (“HRS”) §431:7-101(f). • Appointment: Marine and Transportation (“MA”) and Vehicle (“VE”) related appointments will no longer be available (see the Commissioner Memorandum 2022-5LIC for more information). Surety only and Personal Lines only are still available for appointment. The Applicant must submit an appointment for Property and an appointment for Casualty in the same transaction when the Applicant is appointing the following Lines of Business: Co-Surety, Homeowners, Inland, Marine and Transportation, Ocean, Surety, and Vehicle. You may continue to renew your October licenses via HIC until November 8, 2022. If your license and registration renewal/expiration date is on November 30, 2022, or after, you must go to www.nipr.com to renew your license or registration starting November 16, 2022, at 9 am (HST). The changes above will expedite licensing and CE processes in Hawaii. Prior to the implementation, SBS will also send out fliers to all licensees and CE providers and provide instructions on how to sign up and use various tools in SBS. When SBS goes live, please contact SBS via sbshelp@naic.org or call (816) 783-8990 for SBS services related questions. Contact NIPR via www.nipr.com or call (855) 674-6477 for assistance regarding online submissions. Contact Insurance Division Licensing Branch via inslic@dcca.hawaii.gov or call (808) 586-2788 if you have any questions regarding licensing requirements.