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A business entity (agency) must update affiliate information as individuals join or leave the agency. An individual affiliated with the agency may be a licensed producer, DRLP, an owner with 10% or more interest or voting interest, partner, officer, director, LLC member, manager, or licensing coordinator.
Section 1205(2)(b) of the Michigan Insurance Code, MCL 500.1205(2)(b), requires a business entity to identify a Designated Responsible Licensed Producer (DRLP) in order to obtain a license. The DRLP is responsible for the Business Entity's compliance with the state insurance laws, rules and regulations. A business entity may have more than one DRLP. The DRLP does not have to hold all the same lines of authority as the agency; however, the DRLP is responsible for ensuring agency compliance with all laws and regulations.
Effective December 1, 2016, business entities (agencies) must use the DIFS Insurance Licensing Online Services (ILOS) web page to add or cancel affiliate information.