1. Q: What is Act 147 of 2002?

A: Act 147 of 2002 ("Act 147"), among other things, addresses producer licensing reciprocity among states whose licensing laws are similar to Pennsylvania. In addition, it creates uniform definitions of key terms, establishes uniform standards regarding what entities may and may not receive commissions related to the sale of an insurance policy, and moves toward national uniformity of Insurance Producer license designations.

Act 147 does away with the separate "agent" and "broker" insurance licenses. Now, those who "sell, solicit, or negotiate" insurance must be licensed as "Insurance Producers." Persons with existing agent or broker licenses are deemed to be Insurance Producers under the Act and will convert to the new Insurance Producer license upon the expiration date of their existing licenses.

2. Q: How do I get an application for an Insurance Producer license?
A: Applications are available through a number of sources. You can log onto the Pennsylvania Insurance Department's website at , contact our Bureau of Producer Services at (717) 787-3840, or obtain an application electronically via SIRCON at www.sircon.com. Non-residents can apply through the National Insurance Producer Registry (NIPR) at www.licenseregistry.com. FINGERPRINTING

3. Q: Do I need to submit fingerprints with my license application?
A: After June 4, 2003, anyone who is applying for an Insurance Producer license in Pennsylvania, and is not currently licensed as an agent, broker, or Insurance Producer in any state, is required to submit fingerprints with their application. The Insurance Department uses this information to receive national criminal history records from the FBI through the Pennsylvania State Police.

If you are licensed in another state, and qualify and apply for reciprocal licensure, you are not required to submit fingerprints to the Department.

Current resident licensees will not be required to submit fingerprints in order to convert to the new Insurance Producer license; however, you will be required to submit fingerprints upon the first renewal date of your new Insurance Producer license.

4. Q: If I am licensed as a resident Producer in a state other than Pennsylvania, and I am applying for a Pennsylvania non-resident license, do I need to be fingerprinted?
A: You are not required to submit fingerprints to the Pennsylvania Insurance Department if you are licensed in another state and qualify and apply for reciprocal licensure as a non-resident Insurance Producer.

5. Q: Where do I get my fingerprints taken?
A: Facilities are available at your local State Police barracks, or at one of the six testing centers where the Insurance Producer licensing examination is administered. To obtain a list of local State Police barracks and Insurance Producer licensing examination locations, log onto http://www.psp.state.pa.us/and , respectively. RENEWALS

6. Q: If I have both an agent and broker's license with different expiration dates, when will I convert to the new Insurance Producer license?
A: Conversion dates are based on the expiration date of your agent license and will occur on or after June 4, 2003.

7. Q: Under Act 147, do I have the authority to operate as either an agent or a broker without having to wait until I am issued the new Insurance Producer license?
A: Yes. If you have a valid agent or broker license, you are deemed to be an Insurance Producer under Act 147. Accordingly, following the June 4, 2003, effective date, you have the authority to represent either an insurance company or a consumer, subject to the Act's provisions. You will receive your new Insurance Producer license when your existing agent or broker license(s) expires.

8. Q: Can I receive an Insurance Producer license prior to the expiration date of my agent or broker license?
A: After June 4, 2003, existing agents and brokers are deemed to be Insurance Producers and can perform all the functions thereof. You will receive the new Insurance Producer license when your existing license expires if you are CE compliant and have submitted the appropriate application and fee.

9. Q: What if I fail to "renew" my existing license before it expires?
A: Act 147 provisions allow you up to one year to apply for reinstatement of a lapsed license. You must complete the required continuing education and submit the appropriate renewal form with the lapsed license fee of $165. If these materials are received within 60 days of the date your license lapsed, the license will be reinstated retroactively without any gap in licensure. If the Department receives the materials more than 60 days after the license lapsed, your license will be reinstated prospectively, resulting in a gap in licensure. If you sell, solicit, or negotiate insurance during any such unlicensed period, you may be subject to criminal and civil penalties, including fines and license revocation, for violating Pennsylvania law. LICENSE ACTIVITY

10. Q: If I have an active agent Certificate of Qualification (license) issued prior to June 4, 2003, will I be able to add lines of authority to that license?
A: Yes, you will be able to add lines of authority prior to the expiration of the agent license and prior to the conversion to Producer.

11. Q: Does Act 147 establish a new line of authority, the "Personal Lines Property and Casualty" line of authority?
A: Personal Lines P&C is a new major line of authority. This new line is subject to continuing education requirements.

12. Q: As a Producer, can I pay a referral fee to an unlicensed person?
A: Act 147 permits the payment of referral fees to unlicensed persons as long as the following conditions are met: there is no discussion of specific policy terms and conditions by the unlicensed person, and the payment of a referral fee in consumer transactions is limited to a one-time, nominal fee of a fixed dollar amount per referral that does not depend on whether the referral results in a sale. Licensees who are under suspension and former licensees whose licenses have been revoked are prohibited from receiving referral fees under Act 147.

13. Q: As a Producer, can I charge a fee in addition to a commission?
A: You can charge a fee in addition to a commission, but only in commercial transactions. Such fees must be disclosed in advance in writing, and be reasonable in relationship to the services provided. You cannot charge a fee for just completing and processing an application. LICENSING FEES

14. Q: How will the licensing fees change?
A: Act 147 eliminates certain nuisance fees and changes others. For example, there will be no $10 fee required for any letters of certification requested after June 4, 2003. Additionally, the fee for a resident Insurance Producer is $55 and $110 for a non-resident Insurance Producer for the two-year licensing cycle.

15. Q: What are the fees associated with the new fingerprinting requirement?
A: The Federal Bureau of Investigation, National Crime Information Center charges all law enforcement agencies a fee of $24 to process the fingerprint request. The PA State Police requiresa cashier's check or money order, made payable to the "Commonwealth of Pennsylvania" for $24.00 (US Currency). The PA State Police (PSP)does NOT accept personal checks.

For your convenience, you may also be fingerprinted at a testing location. The vendor may charge an additional fee of up to $20. CONTINUING EDUCATION

16. Q: Are there any exemptions from pre-examination education requirements?
A: There are certain limited exemptions to pre-education requirements under Act 147. We suggest that you contact the Bureau of Producer Services by e-mail at or by telephone at (717) 787-3840 to see if you qualify.

17. Q: Under Act 147, what happens to my license if I am not compliant with my continuing education by the expiration date of my current license?
A: Your license will be considered voluntarily terminated. You will be ineligible to receive the new Insurance Producer license unless you comply with the lapsed license provisions of Act 147. (See question 7 above for information on late renewals.)

18. Q: Does Act 147 require that all applicants applying for a full authority Insurance Producer license complete 24 hours of pre-examination education with a minimum of 3 hours in ethics?
A: Yes, Act 147 does establish a 24-hour pre-licensing education program with a minimum of 3 hours of ethics.

19. Q: I am a resident agent whose license expires on or after June 4, 2003. I am continuing education (CE) compliant. How will Act 147 affect the continuation of my license?
A: You will receive a conversion notice prior to the expiration of your current agent license. You will need to complete the form, attach the appropriate fee ($55), any other documentation required, and submit this information to the Insurance Department. Your application will be reviewed, and if all requirements are met, an Insurance Producer license will be issued. Your resident agent license will terminate upon the expiration date of the license.

20. Q: I am a resident Insurance Producer with only limited lines of authority. Am I exempt from continuing education under Act 147?
A: If you have a license with authority limited to any number of limited lines of insurance, there is no continuing education requirement to maintain that limited line license. APPOINTMENTS

21. Q: When is an appointment necessary?
A: If you are representing a company in selling, soliciting or negotiating insurance, it is necessary to have an appointment with that company. If you are representing a consumer instead of a company in a transaction, a written agreement with the consumer must be executed prior to representing them. This written agreement must describe the services to be provided and must disclose all fees the consumer will be required to pay.

22. Q: Do I need to keep my appointments with my insurance company?
A: If you are representing an insurance company in a transaction, you must have an appointment with that company.

23. Q: Who notifies the Insurance Department of an appointment or termination of an appointment?
A: The company or the insurance carrier notifies the Insurance Department for changes in appointments.

24. Q: What are the new appointment fees?
A: The new appointment fee under Act 147 is set at $15.00 per calendar year, regardless of the length of time the Producer was appointed.

25. Q: Who will pay the appointment fee to the Department?
A: The insurance carrier is billed for all insurance appointments active in the prior calendar year, and the company must pay the fee to the Department within 30 days.

26. Q: Can an insurance company charge me for an appointment fee?
A: The Department's Bureau of Producer Services bills the insurance carrier for all active insurance appointments in the prior calendar year. However, nothing in this law would prevent a Producer or an insurance company from entering into an agreement that details or establishes how an appointment fee would be handled between them.

27. Q: What is SIRCON?
A: SIRCON is a web-based service, provided by our business partner Innovative IT, which permits licensees to process various license transactions. For more information, visit .

28. Q: What services does SIRCON offer?
A: Insurance companies mayrequest letters of certification, appointagents,terminate appointments and prepare their appointmentlists and billings electronically. SIRCON permits an individual tofile an application for a new Insurance Producer license or to renew an active licenseelectronically, and verify their continuing education status or request a letter of certification.

29. Q: Is there a fee for using SIRCON?
A: Yes. SIRCON fees are on a sliding scale, based on the service used. These fees are in addition to the license or appointment fee paid to the Commonwealth of Pennsylvania. There is no charge to an individual licensee verifying his/her continuing education status.