Producer Licensing Model Act (PLMA)

The Producer Licensing Model Act is a model legislation developed by the National Association of Insurance Commissioners (NAIC) which has been adopted in some form by most states.

In states that have not adopted a version of the PLMA, the writing agent and the entire up-line hierarchy must be licensed and appointed in that state to receive override and bonus compensation in that state.

In order to comply with all state guidelines, our Licensing and Commissions Department will continue to take the following steps to ensure all agents are appropriately licensed and appointed when they submit new business applications in non-PLMA states:

• We will verify licenses and appointments in the application state for the agent and the entire up-line hierarchy.
• Compensation will not be paid to any up-line who is not licensed and appointed in the non-PLMA state.

* While Florida does issue an entity license for agencies, commissions may be shared with the unlicensed agency if at least one of the principals is validly licensed and appointed with the carrier.