What Is Carrier Compliance? Definition

Why it matters

When an agent signs a contract with a carrier, the agent agrees to follow its guidelines. Carriers audit applications, calls, and complaints, and can end a contract for violations. Rules differ by carrier and product. Agents should read each carrier's agent guide, complete required training, and ask for help when a rule is unclear. Families benefit because compliant sales lead to fewer disputes over what was promised.

Source: naic.org

Where we use this term

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Related terms

Advertising Compliance: Advertising compliance means making sure insurance ads, mailers, scripts, and web pages follow the law. Statements must be truthful, clear, and not misleading, and some materials need carrier or state approval.
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.
Appointment: An appointment is a carrier's formal record that an agent may sell its products in a state. The carrier files it with the state, and it requires a valid license first.
State Insurance Code: A state insurance code is the set of laws that govern insurance in a state. It covers licensing, policy terms, advertising, claims handling, and consumer protection.
Unfair Trade Practices: Unfair trade practices are insurance sales and claims actions that state law bans, such as misrepresenting policy terms, false advertising, and unfair discrimination. Most states base their laws on an NAIC model act.

All 241 terms

Why it matters

Where we use this term

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