Agents' Licensing (Unlicensed Brokering)

[LOGO] State of North Dakota Office of the Commissioner of Insurance J. O. Wigen, Commissioner State Capitol Building Bismarck, North Dakota 58505 Phone: (701) 224-2440 # BULLETIN 82 - 2 TO: ALL INSURANCE COMPANIES LICENSED TO DO BUSINESS IN THE STATE OF NORTH DAKOTA FROM: J. O. "BUD" WIGEN, COMMISSIONER OF INSURANCE RE: AGENTS' LICENSING (UNLICENSED BROKERING) DATE: JULY 9, 1982 On June 24, 1982, this department issued a bulletin regarding Section 26-17.1-06 of the North Dakota Century Code and the failure of agents and companies to comply with its provisions. It appears that there is an additional area of significant non-compliance. Section 26-17.1-06 prohibits the placing of a policy of insurance with a company through which an agent is not properly licensed and also prohibits an agent from acting as if he were a broker unless so licensed. Agents are referring applications to brokers who in turn submit the applications to the insurance company. The referring agent is being paid a commission and is neither licensed through that company nor as a broker. Such conduct is not permitted under Section 26-17.1-06 and may well constitute a violation for which action may be taken against the agent's license.