18 Del. Admin. Code § 503-4.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 503-4.0 - License Application

4.1 License application for a certificate of authority as a limited representative for fixed or guaranteed annuity may be submitted for a firm, registered firm member, or an individual. The principal determinate for the type of license requested will be the manner in which business is written and commissions paid. Regulation 201 (Formerly Insurance Regulation No. 16) provides a more comprehensive definition of the requirement. In general, if the firm is the producer of record and the recipient of commissions, then the firm or agency should be licensed and those who conduct insurance transactions on behalf of the firm should be licensed as registered members of the firm.

4.2 Firm or agency application: Procedure is described in Delaware Insurance Department Bulletin 75-5. Submit insurance application Form 2B describing the firm, Form 2A describing the member(s) who will conduct business on behalf of the firm and insurer's appointment Form 1A completed by the insurer and fees as required in 18 Del.C. § 1701.

Note that a firm license may not be issued or continued unless there is at least one qualified member registered as to the firm. The insurer sponsoring the initial license is required to provide a statement that a background investigation has been conducted and the applicant meets the requirements for license. [See 18 Del.C. § 1720 (a)(2)] with insurer's appointment Form 1A and fee as described in 18 Del.C. § 701. When adding a new registered member to an existing agency or firm license, complete Form 2C. As noted above, the sponsoring insurer is required to provide the statement of background investigation on each initial applicant for license.

18 Del. Admin. Code § 503-4.0