Company Appointments

You must have an appointment in place within 30 days of signing a contract to represent an insurer or submitting an application for a policy to the insurer.

Insurers, managing general agents, and producers are required to maintain a list of all of their appointments and must be able to respond within three working days to an inquiry made by the director regarding an appointment.

• Filing an appointment with the division is not required.
• The appointments of a business entity extend to its licensed employees who have an employment contract with the firm.
• If an employment contract is not entered into with the employing entity, the licensee is required to be individually appointed by the insurer represented.  
• A business entity transacting business from multiple locations, but under the same FEIN, is not required to have separate appointments.
• You may no longer transact insurance business for any company that has terminated you.

See AS 21.27.215, AS 21.27.100, and Bulletin B05-08.

Agent of an Insurer

An agent of an insurer is any producer, managing general agent, or reinsurance intermediary manager who acts as an agent or represents to be in a contractual relationship with an admitted insurer and sells, solicits, or negotiates any insurance product of that insurer. Such an agent must hold an appointment with the insurer.

A general agent who receives only a commission override for business transacted  by a producer, and who has no involvement in the sale, solicitation, or negotiation of insurance, does not need a license or appointment with the insurer. But if a general agent has direct contact with a client, or receives an application or premium, they must be hold a license and be appointed by the insurer.

See AS 21.27.370 and AS 21.27.550.

Agent of the Insured (Broker)

An agent of the insured, also known as a broker, represents the customer, not the insurer. A licensee may receive both a fee and commission when acting as an agent of the insured.

Any producer who acts as a broker in a transaction is required to execute a written agreement with the client or insured, disclosing the responsibilities of each party as well as the compensation arrangement. A producer does not need to hold an appointment with the insurer to act as a broker.

See AS 21.27.560 and Bulletin B04-14.

Appointment Termination

An appointment continues in force until the insurer, reinsurer, or authorized representative submits the termination in writing and submits the For Cause Termination form.

An insurer must notify the director and the appointed licensee of a “For Cause” termination, for conduct or activity identified in AS 21.27.410 during the appointment, and must include the reasons for termination. This statement of reasons is confidential under AS 40.25.110.

Within 30 days of receiving a notification of “For Cause” Termination, the appointee may file with the director written comments concerning the notification and provide a copy to the insurer, reinsurer, or authorized representative.

See AS 21.27.110.