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 Producer must have at least one Idaho licensed producer (the DRLP) registered to the agency. Multiple producers may be used to cover this requirement. If the business entity losses all of it’s DRLPs the license will be inactivated.
Changes to the DRLP are processed via NIPR.
Certain changes within the business entity need to be reported to the Department with in 30 days. The changes that must be reported are as follows:
- Change of Officers/Directors Form
- Change of Ownership
- Business Entity Name Change
- Addition or Termination of DRLPs
- 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.
Appointments, Affiliations and Registrations
While the terms affiliation, registration and appointment are sometimes used interchangeably they do have specific meanings and their use is different between types of licenses.
Appointments: An appointment is used to give an individual OR agency authority to act under a carrier’s license. All licenses, regardless of LOA or license type are required to be appointed with any carrier they are acting under. Bail Agencies are required to be appointed to a surety company.
Affiliations: Affiliations are used to associate Bail Agents with the Bail Agency they work for. Bail Agencies are required to maintain accurate and up to date list of affiliations with the Department of Insurance. This can be done through the Bail Affiliation and Bail Agent Termination forms.
Registrations (discontinued): A registration was used as a work around due to a system limitation. When Idaho switched to using SBS, registrations were discontinued as it does not have the same limitation. All individuals and business entities need to be appointed with their carrier. Any registrations processed prior to 09/14/2022 are grandfathered in and do not need to have their registration changed to an appointment, however the business entity will be responsible for terminating the registration when the registered individual leave the business entity.
How to Apply
Different business entities have different requirements for licensure. Click on the business entity type below for detailed instructions.
Step 1: Register the business with the Idaho Secretary of State. Non-resident (foreign) entities must use the Director of The Department of Insurance (Dean Cameron) as their service of process when registering the business entity.
Step 2: Have at least one designated responsible 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 3: Apply online via NIPR. There is a nonrefundable fee of $80.
Bail Agency
Step 1: Register the business with the Idaho Secretary of State. Non-resident (foreign) entities must use the Director of The Department of Insurance (Dean Cameron) as their service of process when registering the business entity.
Step 2: Obtain an Appointment to a Surety company.
Step 3: Acquire a bond in the amount of $15,000. The bond must be on the DOI’s bond form.
Step 4: Have at least one designated responsible licensed producer (DRLP) lined up.
Step 5: Send the original bond and appointment to:
Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043
Step 6: Apply online via NIPR. There is a nonrefundable fee of $80.
Step 1: Register the business with the Idaho Secretary of State. Non-resident (foreign) entities must use the Director of The Department of Insurance (Dean Cameron) as their service of process when registering the business entity.
Step 2: Apply online via NIPR. There is a nonrefundable fee of $80.
Step 1: Register the business with the Idaho Secretary of State. Non-resident (foreign) entities must use the Director of The Department of Insurance (Dean Cameron) as their service of process when registering the business entity.
Step 2: Obtain a bond in the amount of $20,000. The bond needs to be on the DOI’s bond form.
Step 3: Send the original bond and appointment to:
Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043
Step 4: Apply online via NIPR. There is a nonrefundable fee of $80
Renewal Information
The Department considers the renewal of a license to be the responsibility of the licensee.
Licenses are valid for 24 months (2 years) and will expire on the last day of the month it was originally issued.
License renewal is available online via NIPR .
Late renewals, previously referred to as reinstatements, are available up to one year past the expiration of the license via NIPR.
If more than one year has passed since the expiration of a license it can no longer be re-instated. After one year a new license will need to be applied for, including fingerprinting and testing.
Resident
Step 1. Apply for a renewal online via NIPR. There is a non-refundable fee of $60 (plus vendor processing fee) when submitting the application online.
Non-Resident
Step 1: Have an active resident license with the lines of authority listed on the Idaho license.
Step 2: Apply for a renewal online via NIPR. There is a non-refundable fee of $60 (plus vendor processing fee) when submitting the application online.
Producer and Independent Adjuster Agency
Step 1: Have an active resident license with the lines of authority listed on the Idaho license. (Non-residents only)
Step 2. Apply for a late renewal online via NIPR. There is a non-refundable fee of $120 plus applicable vendor transaction fees when submitting the application online.
Bail Agency
Step 1: Have an active resident Bail license (non-residents only).
Step 2: Send a bond or proof of active bond and an appointment to:
Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043
Step 3. Apply for a late renewal online via NIPR. There is a non-refundable fee of $120 plus applicable vendor transaction fees when submitting the application online.
Public Adjuster Agency
Step 1: Have an active resident Bail license (non-residents only).
Step 2: Send a bond or proof of active bond to:
Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720
Boise ID 83720-0043
Step 3. Apply for a late renewal online via NIPR. There is a non-refundable fee of $120 plus applicable vendor transaction fees when submitting the application online.
Reporting of Actions
Producers and agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-1021.
Producers are encouraged to use the NIPR Reporting of Actions Warehouse at www.nipr.com as a convenient means to post documents and explanations related to reportable actions.
While the Department encourage the use of the NIPR Reporting of Actions Warehouse for documents, actions still need to be reported to the Department directly, either by e-mail or the applicable background question on new license applications and/or renewals.
Resources
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.
FAQ
How do I get a copy of my license?
You can get a free PDF copy of your license by clicking here.
Is my business required to have a license if I have a license?
If your business name is seen by customers or potential customers at any point it needs to have a license. If you use your business for banking or commission funneling purposes only and it is never seen by customers or potential customers, it does not need to have a 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 a Registration?
While the DOI is not adding new registrations we can terminate agents from current record. To terminate a registration, submit the Termination of the Authority to Act Under Company or Agency/Firm form.
What is a DRLP?
The Designated Responsible 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
DRLPs can be submitted and removed via NIPR.
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.
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 90 days before the expiration date.
Can I submit a late renewal for my license?
Yes. Click here for information on renewing your license late.
How long do I have to submit a late renewal?
You have 1 year from the license’ expiration date to submit a late renewal. After that period of time, you will need to apply for a new license. Click here for information on renewing your license late.
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 NIPR. 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?
You can report a change of officers or directors using the departments Change of Officers/Directors Form. These changes will not be reflected in SBS.
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