FOR IMMEDIATE RELEASE
DEPARTMENT ENABLES INDUSTRY TO APPOINT AGENTS ELECTRONICALLY
More Efficient Licensing and Increased Flexibility Through Electronic Processing
Superintendent of Insurance Neil D. Levin today announced that effective immediately all authorized insurers will have the ability to appoint and terminate licensed agents electronically.
"This use of the internet will result in a reduction in paperwork and data entry, development of national standards regarding electronic transmission of licensing data, and faster turnaround time--thereby reducing the cost and complexity of regulatory compliance," said Levin. "The Department is dedicated to creating uniformity in producer licensing and has worked to implement effective uniform producer licensing standards. This enhancement of efficiency and communication between the Department will also give the industry increased flexibility through the use of the internet."
The Producer Information Network (PIN), an electronic communication network that links state insurance regulators with the entities they regulate, is now fully operational. This network allows all insurers to appoint and terminate licensed agents electronically. Last December, the Department processed its first live PIN transactions. With the trial period a success, PIN has become fully operational. The system allows insurance companies to send Appointment and Termination transactions via the internet through The National Insurance Producer Registry, a not for profit subsidiary of the National Association of Insurance Commissioners (NAIC). These transactions are then transferred electronically to the New York Insurance Department, are processed, and a confirmation is sent to the initiating company. The NAIC performs the processing and notification confirmation of the Appointment or Termination on the Departments behalf.
PIN is the final application of the SR2000 Initiative, a program sponsored by the NAIC, that encompasses aggressive initiatives to encourage state insurance departments to become more effective and efficient regulators.
"We are pleased that PIN trials were a success allowing it to become fully operational, making New York the first major state to attain total compliance with SR2000," added Levin. "It is another step in the most recent efforts allowing state insurance regulators and the insurance industry to protect insurance consumers in the more competitive global marketplace in an efficient and effective manner."
PIN is the latest accomplishment in the Departments commitment to utilizing the latest in technology to meet the needs of New Yorks consumers and the insurance industry. Last week the Department announced on-line interactive assistance on the Departments web site for consumers and earlier this month the Department issued guidance on web sites to encourage the use of the internet by insurers and consumers. In 2000, the New York State Insurance Department web site was awarded an A by the Consumer Federation of America (CFA) in its ranking of State Insurance Department Web sites.
The Insurance Departments web site is www.ins.state.ny.us. The National Insurance Producer Registry web site is www.licenseregistry.com.