Company
Licensing
© 2014 National Association of Insurance Commissioners
OVERVIEW
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What is Company Licensing?
Uniform Licensing Component Processes
Regulators' Uniform Licensing Process
NAIC Available resources
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Primary Application
Expansion Application
Form A
Corporate Amendment
 Open Items
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WHAT IS COMPANY LICENSING?
 License is required for any risk bearing
company to sell any insurance product.
 Licenses are required for each jurisdiction.
 The licensing process is an important
function for state regulators.
 The goal of state regulators is to reduce risk.
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UNIFORM LICENSING COMPONENT PROCESSES
 Administrative Filings
 Receipt and processing of certain corporate
documents that are needed to establish a
corporate existence.
 Analysis of Current Financial Condition
 Documentation of the current operating
condition of the company.
 Analysis of Business Plan
 Review of the company’s explanation for the
proposed expansion and/or change in its
operations and how those changes will effect
the company’s operating condition.
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UNIFORM LICENSING COMPONENT PROCESSES
 Interstate Communication
 Risk-Based Prioritization System
 Category 1
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Insurer appears sound in every aspect.
 Category 2
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Insurer appears neither an obvious candidate
for approval nor for denial based on current
overall condition.
 Category 3
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Insurer exhibits some degree of regulatory
concern in one or more areas.
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REGULATORS’ UNIFORM LICENSING PROCESS
 Receipt of Uniform Certificate of Authority
Application (UCAA)
 Document Completeness of Application
 Prepare Application Control Sheet
 Distribute Application Sections
 Receive Application Sections
 Contact Domiciliary State
 Analyze Current Condition
 Analyze Business Plan
 Make Recommendation
 Prepare/Amend Certificate of Authority of Denial
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NAIC AVAILABLE RESOURCES
 Uniform Certificate of Authority Application (UCAA)
 UCAA Manual
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Is a complete reference manual for the licensing process
 Company Licensing Best Practices Handbook
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Deals primarily with the qualitative processes
 UCAA Website www.naic.org/industry_ucaa.htm
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Electronic application
State Licensing Requirements
 Electronic Databases
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Electronic UCAA
Form A
Use of other Financial and Market Regulation Databases
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NAIC AVAILABLE RESOURCES
 Uniform Certificate of Authority Application (UCAA)
 UCAA Manual

Is a complete reference manual for the licensing process
 Company Licensing Best Practices Handbook

Deal primarily with the qualitative processes
 UCAA Website www.naic.org/industry_ucaa.htm
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
Electronic application
State Licensing Requirements
 Electronic Databases



Electronic UCAA
Form A
Use of other Financial and Market Regulation Databases
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UCAA APPLICATION TYPES
 The Primary Application
 Used by newly formed companies seeking a
Certificate of Authority in their domicile state
and by companies wishing to re-domesticate to
a uniform state.
 The Expansion Application
 Used by companies in good standing in their
state of domicile that wish to expand their
business into a uniform state.
 The Corporate Amendments Application
 Used by an existing insurer for requesting
amendments to its certificate of authority.
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PRIMARY APPLICATION
Items Reviewed
 Name
 Plan of operation
 Narratives
 Lines of Business
 Financial Statements
 Projections
 Investment Plans
 Reinsurance
 Background of officers
 Statutory memberships
 State-specific Information
 States have 90 days. (Only count days where work is being done.)
 Hearing available if companies denied.
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EXPANSION APPLICATION
Items Reviewed
 Name
 Plan of operation
 Narratives
 Lines of Business
 Financial Statements
 Projections
 Investment Plans
 Reinsurance
 Background of officers
 Statutory memberships
 State-specific Information
 History regarding insolvent entities and regulatory fines
 States have 60 days. (Only count days where work is being done.)
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 Hearing available if companies denied.
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FORM A
Items Reviewed
 Name
 Plan of operation
 Narratives
 Lines of Business
 Financial Statements
 Projections
 Investment Plans
 Reinsurance
 Background of officers
 Statutory memberships
 State-specific Information
 Hearing always conducted.
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CORPORATE AMENDMENT
Items Reviewed
 Name
 Plan of operation
 Narratives
 Lines of Business
 Financial Statements
 Projections
 Investment Plans
 Reinsurance
 Background of officers
 Statutory memberships
 State-specific Information
 History regarding insolvent entities and regulatory fines
 States have 60 days. (Only count days where work is being done.)
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 Hearing available if companies denied.
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OPEN ITEMS
 NAIC Working Group created a uniform
Biographical Affidavit and Background
Investigation process; goal is to have all states
require/accept them.
 NAIC rewriting Form A Database.
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SUMMARY
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What is Company Licensing?
Uniform Licensing Component Processes
Regulators’ Uniform Licensing Process
NAIC Available Resources
UCAA Application Types




Primary Application
Expansion Application
Form A
Corporate Amendment
 Open Items
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QUESTIONS/COMMENTS
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