Licensing

Licensing Requirements for Brokers & Consultants

Solicit, sell or negotiate insurance benefits

The National Association Insurance Commissioner (NAIC) Producer Licensing Model Act has been adopted by approximately 40 states. It requires brokers and consultants to hold a "health" or "life/health" insurance license in the state in which the solicitation, sale or negotiation takes place prior to the actual sales activity.

The following states have insurance laws that mandate additional requirements to be met prior to the solicitation, sale or negotiation of insurance benefits:

Colorado—must be licensed and contracted with the carrier quoting the case
Georgia—must be licensed, contracted and appointed with the carrier
Illinois—must be licensed and contracted
Indiana—must be licensed and contracted
Kansas—must be licensed and contracted
Minnesota—must be licensed, contracted and appointed
Montana—must be licensed, contracted and appointed
New Mexico—must be licensed, contracted and appointed
New York—must be licensed, contracted and appointed
Rhode Island—must be licensed and contracted
Washington—must be licensed, contracted and appointed

Place new business

Prior to placing new business, you must be:

licensed, contracted and appointed in the contract/situs state of the account for indemnity business; and
licensed, contracted and appointed in the state in which the corporate office is located for HMO accounts.

Special licensing requirements may exist with the sale of the following:

Dental HMO accounts with multiple membership sites
FlexCare accounts with membership sites in California, Texas and Alabama
Dental/HMO accounts with a member site in Virginia
Dental HMO accounts with a contract/situs location in Georgia or Massachusetts

Receive commissions

To receive full commissions, you must meet licensing requirements prior to the effective date of the account. If you receive your license after the effective date of the account, state and case law requires insurers to pay commissions from the effective the date of the license.

If your affiliated firm receives the commissions, you and the firm must meet the license requirements of the account.

If you have questions about licensing requirements, please contact your local sales office.

Renew accounts

You must maintain a current license by complying with resident-state renewal and continuing-education requirements.

Submit new business

You should work closely with CIGNA Sales Office New Business Managers to complete the filing requirements when submitting new business. Upon sale, you'll be required to:

confirm that all licensing, company appointment and contracting requirements of the account are met;
complete one of the following forms:
Customer Acknowledgement Form (used for all funding arrangements)
Producer Acknowledgement Form (signed by broker/agent)
Producer Contract Agreement

Please direct all licensing, contracting and appointment questions to AgentLicensing@CIGNA.com or to the CIGNA HealthCare Licensing Department by fax at 860.226.3917.