{"id":13253,"date":"2022-10-13T18:03:00","date_gmt":"2022-10-13T22:03:00","guid":{"rendered":"https:\/\/www.resourcepro.com\/the-designated-responsible-licensed-producer\/"},"modified":"2025-11-05T11:39:57","modified_gmt":"2025-11-05T16:39:57","slug":"the-designated-responsible-licensed-producer","status":"publish","type":"post","link":"https:\/\/www.resourcepro.com\/blog\/the-designated-responsible-licensed-producer\/","title":{"rendered":"The Designated Responsible Licensed Producer"},"content":{"rendered":"\r\n

Elaine is a Senior Specialist at ReSource Pro Compliance<\/em><\/p>\r\n\r\n\r\n\r\n

Although state insurance departments license both individuals and agencies for most license types and lines of authority; if there\u2019s an issue, they want a real, live human being to take responsibility for correcting the problem. That\u2019s the role of the Designated Responsible Licensed Producer. This individual personally guarantees the entity\u2019s regulatory compliance for specific lines of authority.<\/p>\r\n\r\n\r\n\r\n

Finding the Right DRLP<\/h2>\r\n\r\n\r\n\r\n

When choosing your Designated Responsible Licensed Producer, there are four important factors to keep in mind:<\/p>\r\n\r\n\r\n\r\n

Licensing<\/h3>\r\n\r\n\r\n\r\n

Every license type and line of authority held by the agency must be matched by a DRLP. If an LOA isn\u2019t \u201ccovered,\u201d or the individual\u2019s\u00a0license lapses<\/a>, state regulators can cancel that line. In some states, agencies can divide the lines of authority between multiple individuals. Otherwise, at least one individual must hold an active license(s) for all the relevant lines.<\/p>\r\n\r\n\r\n\r\n

Authority<\/h3>\r\n\r\n\r\n\r\n

Many states require the Designated Responsible Licensed Producer to be an officer of the corporation or a member\/manager of the limited liability company. They don\u2019t need to have an ownership stake in the agency, but they must oversee some aspect of the agency\u2019s day-to-day operations. This ensures that the individual has the authority to fulfill their responsibilities as a DLRP.<\/p>\r\n\r\n\r\n\r\n

Regulatory Knowledge & Reputation<\/h3>\r\n\r\n\r\n\r\n

A DRLP is there to ensure the agency\u2019s compliance with the insurance laws, regulations, and procedures of the state. Thus, the person chosen needs to have the knowledge and experience to feel comfortable in this essential role.<\/p>\r\n\r\n\r\n\r\n

The selected individual should also have an exemplary regulatory reputation, if possible. Firstly, it enables them to model appropriate behaviors for colleagues. Additionally, if the state requires your DRLP to be an officer, they\u00a0must report\u00a0administrative actions and certain other types of legal issues each time the agency submits a new license application. Avoiding someone with a criminal history or previous administrative actions can make for a shorter and smoother review process.<\/p>\r\n\r\n\r\n\r\n

Commitment<\/h3>\r\n\r\n\r\n\r\n

Lastly, the person serving as DRLP should have a long-term commitment to the agency. While the costs for updating affiliations aren\u2019t as much as those for securing a license, when you start multiplying those fees by several states, it can add up. Additionally, changing DRLPs frequently increases the chance of missing an update and provoking a regulatory incident. Remember, too, that if a DRLP leaves, there is only a small window\u2014usually 30 days\u2014to notify each state where the agency holds a license to register a new individual.<\/p>\r\n\r\n\r\n\r\n

A Final Tip<\/h2>\r\n\r\n\r\n\r\n

Some states allow agencies to have more than one DRLP at a time for a given line of authority. In these states, having a \u201cbackup\u201d for your primary DRLP can be well worth the time and money. Even in states that don\u2019t allow multiple DRLPs, having a second individual with the appropriate licenses ready to step into the role if needed is a wise strategy.<\/p>\r\n\r\n\r\n

\r\n\r\n\r\n

Find out how ReSource Pro helps insurance agencies and producers meet their licensing and compliance needs by visiting our compliance page<\/a>.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

The role of the Designated Responsible Licensed Producer is to personally guarantees the entity\u2019s regulatory compliance for specific lines of authority. When choosing your Designated Responsible Licensed Producer, there are four important factors to keep in mind.<\/p>\n","protected":false},"author":64,"featured_media":13254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"news-category":[],"insurance-segment":[27,28,62,29],"services":[352,33,30,31],"type-of-content":[38],"resource-type":[67],"class_list":["post-13253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","insurance-segment-carrier","insurance-segment-mga-wholesale","insurance-segment-other","insurance-segment-retail","services-business-services","services-process","services-strategy","services-technology","type-of-content-blogs","resource-type-blog"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-04-19 11:12:26","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/13253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/comments?post=13253"}],"version-history":[{"count":4,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/13253\/revisions"}],"predecessor-version":[{"id":15844,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/13253\/revisions\/15844"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/media\/13254"}],"wp:attachment":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/media?parent=13253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/categories?post=13253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/tags?post=13253"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/news-category?post=13253"},{"taxonomy":"insurance-segment","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/insurance-segment?post=13253"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/services?post=13253"},{"taxonomy":"type-of-content","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/type-of-content?post=13253"},{"taxonomy":"resource-type","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/resource-type?post=13253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}