Business Entities (also known as agencies and/or firms) are required to be licensed in Idaho if they sell, solicit, or negotiate (act as a producer) insurance products in Idaho.
Each entity must provide a Designated Responsible Licensed Producer (DRLP). The DRLP is responsible for the entity’s compliance with Idaho insurance laws and rules. Entities must also register with the Idaho Secretary of State. Specific license types may have other requirements.
Idaho Code
Idaho Statutes :
§41-1007 (Business Entity Licensing and DRLP Information)
§41-1008 (Change of Ownership)
§41-1010 (Non Resident Service of Process Information)
§41-1014 (DBA’s)
§41-1017 (Commissions)
§41-1018 (Appointments)
§41-1021 (Reporting of Actions)
§41-1314 (Rebates – Illegal Inducements)
Idaho Statutes:
Title 30, Chapters 21 and 29 (Resident Corporations)
Title 30, Chapters 21 and 25 (Resident Limited Liability Companies)
Title 30, Chapter 21 (Non-Resident Agencies, Requirement to Register)
§30-21-801 through §30-21-810 (Use of a DBA/Assumed Business Name)
Rules:
18.03.05 Credit Life and Credit Disability Insurance
Bulletin 12-03 Certificates of Insurance
Bulletin 11-01 Money Handling and Fiduciary Funds
Definitions
Business entity: a corporation, association, partnership, Limited Liability Company, limited liability partnership or other legal entity. Not to be confused with a Company (an insurer or carrier.)
Company: the insurer or carrier of insurance providing products for sale.
Producer: a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance. We refer to business entities as producers as well.
DRLP: Designated Responsible Licensed Producer is an individual responsible for the business entity’s compliance with the insurance laws and rules of this state. This individual should carry all lines of authority the agency is requesting.
Service of Process: a process whereby nonresident producers shall appoint the director as their agent for purposes of receiving service of legal process issued against the producer in this state upon causes of action arising within this state out of transactions under the license.
DBA or Assumed Business Name: any name other than the true name of any formally organized or registered entity, under which name the entity holds itself out for the transaction of business in the state of Idaho.
License Requirements
All entities doing business in Idaho are required to register with the Idaho Secretary of State
Each business entity must have at least one Idaho licensed producer (the DRLP) registered to the agency. Multiple producers may be used to cover this requirement.
Certain changes within the business entity need to be reported to the Department. The changes that must be reported are as follows:
- Change of Officers/Directors Form
- Change of Ownership
- Business Entity Name Change
- Change of FEIN– If there is a change to the FEIN a new business entity license will be required. The new license will need to be merged with the existing license via a request to merge license. Active appointments and registrations will transfer to the new FEIN.
How to Apply
Step One: Register the business with the Idaho Secretary of State.
Step Two: Have at least one registered licensed producer (DRLP) lined up.
- Variable Line Only: An agency must be registered with FINRA to carry the Variable line of authority. It must have its own CRD number, not provide one that belongs to an agent or their brokerage. Please note a licensed insurance agency can still receive commission for variable sales without the Variable line on their license IF the business was placed through an agent and brokerage carrying the variable line.
Step Three: Apply online via NIPR. There is a Non-Refundable Fee: $80.
Renewal Information
The Department considers the renewal of a license to be the responsibility of the licensee.
Licenses are good for 24 months (2 years) and expire on the last day of the month it was originally issued.
License renewal is available online via either NIPR.
There is a non-refundable fee of $60 (plus vendor processing fee) if renewing online prior to expiration date. Be sure to provide a current email address. A license copy will be emailed upon approval.
A copy of the license can also be downloaded at no charge after 24-48 hours.
Reinstatement
Resident and Non-resident Business Entities: If the business entity has not renewed its license before the expiration date, the license will require reinstatement.
Reinstatement is available up to one (1) year past the expiration of the business entity license.
There is a non-refundable fee of $120 plus applicable vendor transaction fees when reinstating online.
An online license reinstatement for resident and non-resident business entities can be done through either NIPR.
Reporting of Actions
All Producers and Agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-5819
The Department encourages producers to use the NIPR Reporting of Actions Warehouse at www.nipr.com as a convenient means to post their documents and explanations to report to any state in which they are licensed.
Resources
FAQ
Where can I get a copy of my license?
You can get a free copy of your license from the SBS License Manager.
Is my business required to have a license if I have a license?
A business entity that acts as an insurance producer needs to have a business insurance license separate from any individual license.
Am I required to register my business with the Idaho Secretary of State (SOS)?
Yes, all entities doing business in Idaho must be registered with the Idaho Secretary of State.
How do I register my Business Entity with Secretary of State?
Please visit Idaho’s Secretary of State’s website for information on business registration.
Is my business required to have all producers registered to the business license?
The DOI has discontinued registrations. All agents are required to be appointed to any insurer whose products they sell. Please see §41-1018 for more information.
How do I terminate an Appointment/Registration?
While the DOI is not adding new registrations we can terminate agents from the current record. To terminate a registration, submit the Termination of the Authority to Act Under Company or Agency/Firm form.
Appointments need to be terminated via NIPR.
What’s the difference between an Appointment and a Registration?
-An appointment is used to give an individual OR agency authority to act under a carriers license.
-A registration was used as a work around due to a system limitation. When Idaho switched to using SBS, registrations/affiliations were discontinued as it does not have the same limitation. All individuals and business entities need to be appointed with their carrier. Any registrations/affiliations processed prior to 09/14/2022 are grandfathered in and do not need to have their registration/affiliation changed to an appointment, how ever the business entity will be responsible for terminating the registration/affiliation when they leave the business.
What is a DRLP?
The Designated Registered Licensed Producer is an individual responsible for the business entity’s compliance with the insurance laws and rules of this state.
How do I add a DRLP to my business license?
DRLP’s can be submitted and removed via the add a DRLP form
Can I use multiple DRLPs to cover all lines of authority, if needed?
Yes, multiple DRLPs can be assigned if one producer does not carry all of the lines the agency is applying form.
Can an agency carry the Variable line on their business producer license if they don’t have their own CRD number?
No. An agency must be registered with FINRA to carry the Variable line on its license. It must have its own CRD number, not provide one that belongs to an individual or their brokerage. Please note, a licensed insurance agency can still receive commissions for variable sales without carrying the Variable line on their license, If the business was placed through an agent and brokerage carrying the Variable line.
Can an agency receive commissions if they do not carry the Variable line on their license?
Yes, A licensed insurance agency can still receive commissions for variable sales without carrying the Variable line on their own license. If the business was placed through an agent or brokerage carrying the Variable line on their license.
Can an agency carry Surplus Lines?
No. Surplus Lines is limited to individual producer licenses in Idaho.
How long is my license good for?
Your license will expire after two years if you do not apply for and are granted a renewal. Licenses expire on the first day of the month in which the license was granted.
When can I apply to renew my license?
You can apply for renewal up to 60 days before the expiration date.
How do I renew my license?
Click here for information on renewing your license.
How do I reinstate my license?
Click here for information on reinstating your license.
How long do I have to reinstate a lapsed license?
1 year, click here for more information.
How do I change my Business Entities name?
Before you can change your Business Entities name you need to register it with Idaho’s Secretary of State. Once you have registered the new name you will need to submit the Business Entity Name Change Request Form and the approved filling form from the Secretary of State to the Department.
How do I add a DBA (Doing Business As) to my license?
Before you can add a DBA to your license you must first register it with Idaho’s Secretary of State. Once you have registered the DBA you will need to submit the DBA Add Request Form and the approved filling form from the Secretary of State to the Department.
How do I change my contact information (address, phone number, email address)?
This information can be updated via the SBS portal. Once updated, allow 24 hours for the updated information to appear on our website.
How long does it take for the website to reflect changes made by the Department of Insurance?
Any changes to your record are usually reflected within 24-48 hours of the change.
Do I need to report a change of ownership?
Yes. Per Title 41-1008(6), you must report a change of ownership to the Department of Insurance within 30 days, using our form.
How do I report a change of Ownership for a Business Entity?
To report a change of owner ship you will need to fill out and submit the Change of Ownership Form.
How do I report a change of Officer/Director for a Business Entity?
To report a change of officer/director you will need to fill out and submit the Change of Officers Form.
How do I know who the officers of record are for my agency?
Idaho expects that Business Entities will keep records of their officers. A request can be made to the Department for the last Officer Change Form submitted for you to compare to your own records to check for accuracy, however, this will only show the last change, not all the officers.
How do I surrender/cancel my license?
There is no negative consequence or penalty in Idaho for allowing your license to lapse for failure to renew. However, if you want to voluntarily surrender your license, you may submit the appropriate Voluntary Surrender Request form. The form can be found on the Departments Forms/Links page.
Have more questions?
Contact the Licensing Team