What Is Background Check? Definition

Why it matters

Most license applications ask about felonies, certain misdemeanors, and past regulatory actions, and states often confirm answers through fingerprints. A record does not always block a license, since states weigh the type and age of the offense. Carriers run their own reviews too. Answering truthfully on every form matters most.

Source: naic.org

Where we use this term

Related terms

Fingerprinting: Fingerprinting is a step in which an applicant gives fingerprints so a state can run a criminal history check. Many states require it as part of the producer license application.
Producer License: A producer license is a state-issued credential that lets a person sell, solicit, or negotiate insurance. States issue it by line of authority, such as life, and the holder must follow that state's insurance laws.
Contracting: Contracting is the process of signing an agent up with an insurance carrier so the agent can sell and be paid on its products. It includes forms, a background review, and a commission agreement.
State Department of Insurance (DOI): A state Department of Insurance is the state agency that licenses agents, reviews insurance products, and handles consumer complaints. Names vary, such as Division of Insurance or Department of Financial Services.
Carrier Appointment: A carrier appointment is the approval an insurance company gives an agent to sell its policies in specific states. The carrier registers the agent with each state's insurance department.

All 241 terms

Why it matters

Where we use this term

Start your climb.