Temporary Producer Licensing Related to COVID-19

FAQ
Why is DIFS issuing temporary licenses?

The third-party vendor under contract with DIFS to provide licensing examination services has suspended its operations by closing its testing facilities in response to the COVID-19 pandemic. The suspension of operations and/or closure of testing facilities by this vendor has resulted in some prospective new producer license applicants being unable to obtain licensure and secure employment.

Who is eligible to apply for a temporary license?

Resident Insurance Producer applicants. Pursuant to Section 1211b(1)(d) of the Insurance Code, MCL 500.1211b(1)(d), the Director has determined that circumstances exist in which “the public interest will best be served by the issuance of temporary insurance producer licenses.” No other license types are being considered for temporary licensure at this time.

What are the requirements to obtain a temporary license?

An applicant must meet the requirements for licensure under Section 1205(1) of the Insurance Code, MCL 500.1205(1), without requiring examination:

  • Is at least 18 years of age.
  • Has not committed any act listed in section 1239(1).
  • Has completed a prelicensing course of study for the qualification(s) for which the person has applied.
  • Sponsorship by one of the following:
    • Michigan Resident Individual Producer
    • Michigan Resident Business Entity Producer
    • Authorized Insurer
How do I apply to obtain a temporary producer license?

File an Electronic Resident Licensing (ERL) application through the National Insurance Producer Registry (NIPR) (www.nipr.com).

The license application fee is $10.00 plus a $5.00 transaction fee.

Submit form FIS 2351 Request to Sponsor a Temporary Producer Licensee.

Additionally, the sponsor must submit the applicable affidavit based on the sponsor type.A temporary resident producer can be sponsored by any of the following:

What are the responsibilities of a Resident Individual Producer sponsor?

Sponsor must maintain his or her license in good standing.

Sponsor is responsible for ensuring that the scope of the temporary producer’s duties will not exceed the authority granted through issuance of the temporary license.

Ensure the temporary producer will only sell, solicit, or negotiate on behalf of insurers with which they hold an appointment; and if the appointment is terminated immediately notify the Director.

Ensure that the temporary producer continues to meet the requirements for the temporary license.

Give written notice to the Director, immediately, if the temporary producer is no longer under the sponsor’s direct supervision.

Accept full responsibility for the temporary producer’s actions while under my supervision and I will be held accountable for any misconduct or violation of the Michigan Insurance Code or related regulation committed by the temporary producer.

Sign and submit the FIS 2354 Michigan Licensed Producer Sponsor Affidavit.

What are the responsibilities of a Resident Business Entity Producer sponsor?

The Designated Responsible Licensed Producer (DRLP) that signs the FIS 2353 Michigan Licensed Business Entity Producer Sponsor Affidavit must maintain his or her individual resident producer license in good standing.

The business entity producer must maintain its license in good standing with DIFS.

The business entity producer is responsible for ensuring that the scope of the temporary producer’s duties will not exceed the authority granted through issuance of the temporary license.

Ensure the temporary producer will only sell, solicit, or negotiate on behalf of insurers with which they hold an appointment and, if that appointment is terminated, the business entity producer will immediately notify the Director.

Ensure that the temporary producer continues to meet the requirements for the temporary license, including maintaining an insurer appointment.

Give written notice to the Director, immediately, if the temporary producer is no longer under its direct supervision.

The business entity producer accepts full responsibility for the temporary producer’s actions while under its supervision and will be held accountable for any misconduct or violation of the Michigan Insurance Code or related regulation committed by the temporary producer.

Sign and submit the FIS 2353 Michigan Licensed Business Entity Producer Sponsor Affidavit.

What are the responsibilities of an Authorized Insurer Sponsor?

Accept full responsibility for the temporary producer’s actions while under its supervision and the Sponsoring Insurer will be held accountable for any misconduct or violation of the Michigan Insurance Code or related regulation committed by the temporary producer.

Is responsible for ensuring that the scope of the temporary producer’s duties will not exceed the authority granted through issuance of the temporary license.

Shall submit an electronic appointment for the temporary producer upon notice from DIFS that the temporary license has been issued.

Must maintain a record of all producers operating under a temporary license and business transacted by each temporary producer being sponsored.

Must immediately give written notice to the Director if the temporary producer’s appointment is terminated.

Immediately give written notice to the Director if the temporary producer is no longer under sponsoring insurer’s direct supervision.

Ensure that the temporary producer will limit their producer activities to the state of Michigan only and will ensure sales activities and training are coordinated by a licensed insurance producer in good standing with DIFS or where applicable, a FINRA-licensed registered principal.

Sign and submit the FIS 2352 Michigan Authorized Insurer Sponsor Affidavit.

If I have already filed an application through NIPR, do I need to file another one to obtain the temporary license?

No. If you have already filed an application, a second application is not required. Please note that applications are valid for 180 days from entry into our database and if your application is older than 180 days, you will be required to submit a new application.

Will a background check be run before a temporary license can be issued?

Yes. All requirements for licensure identified in Section 1205(1) of the Insurance Code, MCL 500.1205(1), will need to be met, except for successful completion of the licensure examination.

What are the conditions under which the temporary license will be issued?

The temporary producer’s license will be limited to activity within the state of Michigan.

The license will be issued for a period of 90 days or until 30 days after the cessation of the current State of Emergency related to COVID-19, whichever is later, but shall not exceed a total of 180 days.

Temporary licenses will automatically expire 90 days after issuance or 30 days after the State of Emergency is lifted by the Governor, whichever is later.

Temporary producer licenses are subject to cancellation or revocation if the temporary licensee violates the insurance laws of this state or if the interests of insureds or the public are endangered.

How will the temporary license affect my CE review date?

A CE review date will not be established based on the temporary license. If you convert the temporary license into a permanent producer license, the CE review date will be calculated based on the issue date of the permanent producer license.

What are the responsibilities of a sponsoring insurer?

A sponsoring insurer assumes responsibility for all acts of the temporary licensee.

The sponsoring insurer must be authorized to write for the line of insurance the producer is applying for.

This temporary appointment will coincide with the duration of the temporary license.

The sponsoring insurer must maintain a record of all producers operating under a temporary license and business transacted by them.

The appointment of a sponsoring insurer will be the only appointment that is permitted for a temporary producer licensee.

The sponsoring insurer must assure that the temporarily licensed producers’ sales activities and training are coordinated by a licensed insurance producer in good standing with DIFS or where applicable, a FINRA-licensed registered principal.

Can I obtain a non-resident license in another state with the temporary producer license?

No. The temporary producer license allows the producer to operate in Michigan as a resident temporary producer. Temporary producers are not eligible for non-resident licenses in other states.

Will DIFS issue a non-resident license to an applicant who holds a temporary license in their home state?

No. A temporary producer from another state is not eligible for a non-resident producer license in Michigan.

Will DIFS permit a temporary resident producer to be affiliated as a Designated Responsible Licensed Producer (DRLP)?

No. A temporary licensee cannot be a DRLP for a licensed business entity.

Can the temporary license be converted to a permanent producer license?

Yes. Any active temporary producer license issued pursuant to Bulletin 2020-20-INS may be converted to a permanent producer license by completion of all prerequisites of a license for the desired line or lines of insurance, including meeting all examination requirements under the Insurance Code.

No additional fee shall be required in association with the issuance of the permanent producer license unless additional lines of insurance are requested.

Recipients of such temporary producer licenses will be subject to any and all limitations on the authority of such temporary licenses pursuant to Michigan law.

Can I immediately start working after I receive my Temporary Producer License?

No. You must first obtain an appointment from an authorized insurer before you can sell, solicit or negotiate any insurance business.

If I am sponsored by a business entity (agency) will I automatically be affiliated with the sponsoring business entity?
No. The sponsoring business entity will need to affiliate you with the business entity license through their Insurance Licensing Online Services (ILOS) account.