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CL-245 Understanding the
Licensing Review Process
GAYLE PASERO, WA OFFICE OF
INSURANCE COMMISSIONER AND
ERIC SHOWGREN, UT INSURANCE
DEPARTMENT
Understanding the Licensing Review
Process
• By end of this session you will have a better
understanding of the regulatory review process
of licensing applications.
• The most critical aspects are application
completeness and understandability.
Ways applicant can understand and
expedite the regulatory review process
• Is the application package complete?
• Submit all items on application checklist and if you feel
an item is not applicable state why you think so. Also, in
many states an application is not considered received
until it is complete, including payment.
• UCAA forms submitted must be the most recent revision.
If not, you will be asked to resubmit the forms using the
most current version.
• All forms must be fully completed, including all changes
on a Corporate Amendment Application.
Ways applicant can understand and
expedite the regulatory review process
• Certificate of Deposit and Certificate of Compliance
must be completed and included with application
(common deficiencies).
• The original Certificate of Authority or Affidavit of
Lost Certificate of Authority, Form 15, must be
returned when filing amendments resulting from
name changes, mergers (non-survivor) and
redomestications. Some states also require the
original certificate of authority with statutory
address changes.
Common errors found during review
which delay completion and approval
• Company doesn’t meet capital and surplus or
seasoning requirements. Check NAIC chart for
state specific requirements prior to submitting the
expansion application.
• Plan of Operation Narrative must explain your
company’s business plan in complete detail for the
expansion state so that follow up questions can be
avoided.
Common errors found during review
which delay completion and approval
• Incomplete Pro Forma submitted. Complete Pro Forma
including the Risk based Capital portion of Balance Sheet.
• Are Pro Forma items consistent with Narrative (Business Plan)
and Questionnaire responses?
• Were executed copies of Articles and Bylaws submitted
instead of drafts?
• Send updated financial information including annual and
quarterly statements, actuarial opinion, Management’s
Discussion and Analysis and Independent CPA audit report
while the application is in the process of being reviewed.
Common errors found during review
which delay completion and approval
• Biographical affidavits not submitted on the most recent
revision. Were independent third party verifications and
or fingerprint cards, when required, ordered? Also, third
party verifications should be sent directly from the
verifier to the state.
• Uniform Consent to Service of Process designee must
conform to expansion state laws (in Utah must be located
in Utah or an 800 number).
• When deleting a line of authority on a corporate
amendment application check the NAIC chart for state
specific requirements.
Becoming familiar with the above and
reviewing applications for
completeness, including avoidance of
common errors, will expedite regulator
review and approval.
Questions????