NHADA-Pub3-2021-Issue4-FLIPBOOK

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 . NH INSURANCE DEPARTMENT PRODUCERS LICENSING: DAN BENNETT VICE PRESIDENT OF GOVERNMENT RELATIONS ARE YOU COMPLIANT? D R I V E 22