New WA Producer Law Effective July 1, 2009
As you likely know, on July 1st, 2009, Washington State transitioned to what is called a Single Producer Licensing Model. In this new model, if an insurance producer places business with an insurer with whom the producer is not appointed, the producer may either:
(A) Have a Producers Bond in place for $2,500 or 5% (whichever is greater, up to a maximum of $100,000)
of your last year's written premium from Admitted business placed thru non-appointed markets
(B) Obtain an affiliation with each MGA
While some wholesalers may suggest you to obtain a specific MGA affiliation, it is important to note that this process would need to be repeated for every wholesaler/program manager with whom you do business. After consulting with the WA Insurance Commissioner's office and other industry associations, Griffin Underwriting Services is of the opinion that option (A) would be optimal for most of our agency partners. Having the bond in place would preclude the need to be affiliated with all the wholesale markets with whom you are currently doing business. With regard to this issue, having a Broker/Producer's Bond in place will be sufficient for all your dealings with Griffin Underwriting Services. Any existing limited appointments you may have in place with companies will be eliminated.
For other questions that you may have or more detailed information on how these changes might affect you, please see Washington State Insurance Commissioner's web site at http://www.insurance.wa.gov/agents_brokers/index.shtml which includes the verbiage of the law itself, as well as a quick reference sheet.
To assist you in obtaining a Broker's Bond, we've worked with our markets to provide a solution. Feel free to click thru to these links for our Broker/Producer's Bond Guidelines and Broker's Bond Application (Financial Statement may also be necessary).