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Common compliance issues for licensees

It’s important to understand the common compliance issues for licensees so that you can avoid possible fines and enforcement actions. 

Updating contact information 

Almost all communication from our office, including your renewal notice, is sent via email. There must be a current email address on record for your license.  

You have 30 days to update contact information if there are any changes to your: 

  • Email address
  • Mailing address 
  • Business address 

You are required to respond 

If we send you any inquiry, you have 15 days to respond.  

You have 30 days to report any criminal or administrative actions taken against your business by any other regulatory agency.  

Transacting business

Business-entities 

Make sure you affiliate all licensed individuals who represent your business, including your Designated Responsible Licensed Person (DRLP).

Maintain a separate premium account and ensure you do not commingle funds.  

If your business is selling insurance for companies it is not appointed to represent, it must have a bond in favor of the People of Washington. 

Individuals 

If you represent an agency, make sure you are affiliated before you transact business. 

If you are selling insurance for companies you are not appointed to represent, you must have a bond in favor of the People of Washington state. 

Notification of security breach 

Any breaches involving an insured client's personal or health information require you to notify our office in writing within two business days after informing the client. 

Designated Responsible Licensed Person (DRLP) for business-entities 

Maintain an active DRLP. This person is responsible for the business entity’s compliance with the insurance laws and rules of this state.  
 
The DRLP must also be affiliated with the business entity.  

Required disclosure for charging fees 

Before charging fees, disclose it in writing to your client and obtain their agreement and signature on a disclosure form.  
 
If you are receiving a commission and charging a fee, you must disclose: 

  • The fee being charged 
  • The commission being earned (in dollars) 
  • The full name of the company paying the commission 
  • An explanation of any offset of the fee, if appropriate 
  • The possibility of contingent commissions, if appropriate 

Education requirements for individuals 

See also

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