A recent New Hampshire Insurance Department (NHID) bulletin fired a warning shot across the bow of all dealerships that sell “credit life and disability (accident and health) insurance” as part of their F&I process. The Department believes that many dealers are selling these credit insurance products but do not have the required “Designated Responsible Licensed Producer” (DRLP) on staff.
All dealerships need to take this warning shot seriously and get into compliance immediately if they are indeed selling such products. On the flip side, if your dealership is not selling these products or any other kind of insurance product, you can cancel any insurance licenses you do have. Please carefully read the following FAQs to see what you need to do.
Frequently Asked Questions
What F&I products are considered “credit insurance” and thus require the Dept. of Insurance licenses?
F&I Products such as credit life and disability (accident and health) insurance are covered by RSA 402-J:6 and a dealership would need to have a DRLP on staff and also have a valid producers license. See below how to secure a license. If you have any questions if a product does or does not require licensure, you should contact your legal counsel or NHADA.
If my dealership sells products such as service contracts, physical damage protection (fabric protection, dent & ding, tire/wheel, etc…) or a GAP waiver program, do I need any licenses from the Department of Insurance?
No. Those products are not covered by RSA 402-J:6 and thus do not require a license. If you have any questions if a product does or does not require licensure or registration, you should contact your legal counsel or NHADA.
I do not sell credit life and disability (accident and health) insurance and want to cancel my producers license and/or the DRLP license. What steps to I have to take?
If you are not selling a credit insurance product (credit life and disability (accident and health) insurance) regulated under NH RSA 402-J:6 (II), you can cancel your producers license and/or the DRLP license:
Print the “Request for Surrender, Terminate or Cancel” form from the NHID website or use the link below:
https://www.nh.gov/insurance/producers/documents/voluntary-license-surrender-form.pdf
The form is located on the NHID PRODUCER/ADJUSTER webpage. You must send the written request to cancel to the NHID and it must be signed by the licensee. For entities, a designated producer or an officer signs the request to cancel. The request can be mailed, faxed 603-271-7029 or emailed to producerquestions@ins.nh.gov.
I do sell credit life and disability (accident and health) insurance, What steps to I have to take to get properly licensed?
If you are selling a credit insurance product (credit life and disability (accident and health) insurance) regulated under NH RSA 402-J:6 (II), you need:
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- To Obtain two licenses:
- 1. ensure that your dealership’s producers license is up to date (expires May 31st every other year from date of issuance).
- 2. ensure that you have a designated responsible licensed producer (DRLP) licensed for credit authority on staff and recorded with the NH Insurance Department
- Make sure your DRLP is properly licensed including:
- Resident Individuals must satisfactorily pass a formal written examination for a producer license for credit authority. This examination is administered by the NHID’s business partner, Prometric.
- Approved Pre-Licensing Courses
- The NH Insurance Department does not provide study materials, cannot recommend any supplier of study materials and does not evaluate the quality of any training course or study material. The following businesses have advised us they may have training or study materials that you can purchase. The taking of a course alone does not guarantee that an individual will pass a licensing exam, it merely is another tool available for an individual to use to prepare for the test itself.
- Examination Information, Including Examination Registration (Prometric)
- Apply for your license here: https://nipr.com/licensing-center/apply
- Use the attached form or link here to notify the NHID that you are the DRLP assigned to your business here: https://www.nh.gov/insurance/producers/documents/designated-producer-addition-for-creditauthority-form.pdf
- In addition, you will have to comply with RSA 420-P the Insurance Department Data Security Law
- To Obtain two licenses:
What if I need to make an amendment or change to my DRLP?
Individual Amendments & Business Entity Amendments
- Adding, Changing, Deleting DRLP's or LOA's; Mail a written request signed by the new DRLP, include $50 fee or complete the change form . Make checks payable to the NH Insurance Dept. This cannot be processed online.
NHADA can provide further information and is available to discuss this issue and compliance at your business by calling (603) 224-2369 or emailing Dan Bennett.
