TN Insurance Bulletin 20-09: COVID-19 Guidance on Temporary Producer Licensing

STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243-5065 615-741-6007 BILL LEE HODGEN M. MAINDA GOVERNOR COMMISSIONER BULLETIN 20-09 TO: All Licensed Producers FROM: Hodgen Mainda, Commissioner RE: COVID-19 Guidance on Temporary Producer Licensing DATE: April 24, 2020 As part of the Department’s ongoing efforts to respond to the COVID-19 pandemic, this bulletin advises all insurance producers of the actions taken by this Department to process producer licenses and address issues related to services provided by third-party vendors. Third-party vendors under contract with the Department to provide producer examinations have suspended, and are continuing to suspend, operations and/or close facilities in response to the COVID-19 pandemic. The suspension of operations and/or closure of facilities by these third-party vendors has resulted in some prospective new applicants being unable to obtain an insurance producer license and secure employment. Under the authority of Tenn. Code Ann. § 56-6-111, the Commissioner has found that circumstances exist where the public interest will best be served by the issuance of temporary insurance producer licenses. Effective immediately, the Department will issue temporary producer licenses to applicants meeting the requirements for licensure without requiring examination for life, accident and health, property, casualty, and personal lines insurance subject to the following conditions: 1. All temporary licenses will expire in 180 days. Any producer who completes the appropriate exam (if available) within the 180 days will have his/her license type changed from a temporary to regular license without new application or fees. After 180 days, if the applicant has not taken or successfully passed an exam, the temporary license will expire, and the individual will need to reapply and meet the regular requirements. 2. Individuals seeking temporary licensure must complete Tennessee Bureau of Investigation fingerprinting. Information can be found on our website at: https://www.tn.gov/commerce/insurance/agent-producer-resources/licensing-packetsinstructions-forms.html. Click on ‘Fingerprinting Information’. Individuals who have been convicted of a felony are not eligible for temporary licenses. 3. Temporary producer licenses are subject to cancellation or revocation at the discretion of the Commissioner without hearing under Title 4, Chapter 5 of the Tennessee Code. 4. The temporary producer license allows the producer to operate in Tennessee as a resident temporary producer. Temporary producers are not eligible for non-resident licenses in other states. 5. A sponsoring insurer must assure that the temporarily licensed producers’ sales activities and training are coordinated by a licensed insurance producer in good standing with the Department or where applicable, a FINRA-licensed registered principal. Company appointments or terminations will not be processed for a temporary licensee; however, company appointment will be required after the licensee has passed the exam and converted the temporary license to a regular license. 6. Any active temporary producer license issued pursuant to this Bulletin may be converted to a regular producer license by completion of all prerequisites of a license for the desired line or lines of insurance, including meeting all examination requirements pursuant to the applicable statutes within 180 days of issuance of temporary or prior to the expiration of the temporary license. No additional fee shall be required in association with the issuance of the regular producer license. Notification of passing exam results should be sent to the Agent Licensing Section at ce.agent.licensing@tn.gov or faxed to 615-532-2862 to convert the temporary license to a regular producer license. 7. Recipients of such temporary producer licenses will be subject to any and all limitations on the authority of such temporary licenses pursuant to Tennessee law. 8. The issuance of temporary producer licenses will discontinue as soon as producer examinations are available. In order to apply for a temporary producers’ license an applicant must: 1. Submit an application online via the National Insurance Producer Registry (NIPR) website at www.nipr.com. 2. Submit a $50 application fee. 3. Complete Tennessee Bureau of Investigation fingerprinting and background check. Go to www.identogo.com to register for fingerprinting and locate an open site. Tennessee insurance producer candidates must use ORI# TN920680Z when scheduling/completing fingerprint requirements per the Tennessee Bureau of Investigation. 4. Once approved, a temporary license can be verified and printed online at www.statebasedsystems.com. All questions regarding this notice may be directed to Kim Biggs, Director of Agent Licensing, at 615-741-2693, option 9.