Insurance Agency Compliance Requires Full-Time Focus

Making Compliance Easy

Insurance agencies have a lot on their plates every day, from servicing existing customers to growing their businesses. Adding to their workload is the ongoing need to keep up with insurance licensing and compliance requirements. But compliance is not a part-time task. Dropping the ball on regulatory issues can halt agency growth, disrupt service, and result in costly penalties. Agencies need an experienced partner to ensure compliance, and that’s where ILSA comes in. ILSA is a ReSource Pro company that offers compliance reviews, advice, and full-service licensing in all 50 states, the District of Columbia, and U.S. territories.

Challenges for Agencies

Here is an example of how compliance challenges can quickly mount for agencies:

Bob has just launched an insurance agency and things are going great. Obtaining his resident license was simple, so he assumes compliance will be easy, even as the agency grows. With lots of business opportunities in his community, Bob hires a team of producers. His new team is smart and motivated, so he assumes each of them will ensure they are properly licensed before they solicit new business or service existing accounts. Soon Bob decides he can build on the growth momentum by opening additional branches of the agency nationwide.

With branch offices in multiple states, Bob can no longer keep as close an eye on compliance as he could when the agency was a single location. As a few producers in the other offices miss their license renewal deadlines, Bob dismisses the lapses as one-time events. Then he is surprised to see a regulatory consent order—a legally binding instruction to address regulatory violations. It dawns on Bob that if his agency doesn’t pay more attention to compliance, he won’t be able to achieve his growth goals. He realizes that it’s too risky to expect every employee to shoulder responsibility for regulatory compliance.

ReSource Pro Compliance to the Rescue

Agency owners like Bob are facing similar challenges. Keeping up to date with the latest compliance requirements and procedures is a full-time job—and one that never ends if an agency wants to remain in business. Fortunately, ReSource Pro can help. Our specialists understand the latest compliance standards and work closely with clients to identify their specific needs. Then they recommend a customized business solution to meet those needs:

  • Insurance Licensing. We can secure the license types and lines of authority that an agency might need, including major lines producer, surplus/excess lines broker, adjuster, MGA, TPA, and more.
  • Corporate Compliance. We offer Secretary of State business registrations as well as annual/biennial returns and franchise/foreign entity tax filings for states that require them.
  • Surplus Lines Tax Filings. We go far beyond licensing for agencies that place business in the non-admitted market. We help agencies enroll in state surplus lines associations where required, verify the accuracy and completeness of policy filings, and then ensure that regulators receive policy filings and tax reports in the correct format at the appropriate time.

ILSA and ReSource Pro are committed to helping insurance agencies succeed by managing compliance so that agencies can focus on serving their customers.

To learn more about how ILSA and ReSource Pro can help your agency with compliance, visit the ILSA website.