Don’t forfeit your Pru override compensation! Please review these important details from Prudential.
Prudential has updated its position and similar to many other Core Carriers has identified additional states that require IMOs and BGAs to be licensed and appointed in order to receive override compensation payments (referred to as “override states”). The list of states is expanding from three (MS, NY, and VA) to 16. This change impacts all BGA partners. AIN requires that Member Firms hold a non-resident state license in all states in which their business is written.
As a result, effective April 11, 2022, BGAs will need to be licensed and appointed for any policy placed in the following states in order to receive override compensation from Prudential: CA, FL, GA, Guam, KS, KY, LA, MS, NM, NY, PA, SD, TX, VA, WV, and WI.
All applications received will go through license validation checks. The first check will occur at the time of application submission and the second check will occur at time of policy issue. If the first check identifies a qualification deficiency, the BGA will be notified via a task labeled “BGA Licensing Alert” with the following message and will need to acknowledge this message in order to continue processing the application:
State law requires the BGA to be licensed and appointed to receive compensation on any policy placed in connection with this application. Please work promptly to obtain the necessary license and appointment. Failure to do so by time of policy issue will result in forfeited compensation for the BGA. As the BGA, you must acknowledge that you have received and understand this requirement and the resulting impact. Once you acknowledge, we will continue to process the application. If you need time to get appointed and licensed, do NOT acknowledge this until you are properly appointed and licensed and you are in receipt of an Appointment Confirmation Letter from Prudential.
Prudential’s Licensing, Appointment, and Registration Services team will be processing state appointments for all override states BGAs are currently licensed in. For any new licenses, please complete the “BGA Appointment Cover Sheet” and submit it to email@example.com for processing.