The DRLP (Designated Responsible Licensed Producer)

The DRLP is the single most load-bearing concept in entity licensing. If you only remember one thing about standing up the MGA, remember this.

Definition

A Designated Responsible Licensed Producer (DRLP) is the individual who backs a business entity’s producer license. For an entity to get a resident entity producer license, it must have at least one DRLP who is licensed in the line of authority for which the entity wants to be licensed. GROUNDED · Fenwick

In Westmont’s words: “To support a business entity license in any state, an individual must hold the same license. This individual is known as a Designated Responsible Licensed Producer.” GROUNDED · Westmont

The three rules that follow

1. Same line of authority. The DRLP must hold the same license/line the entity is seeking. If the entity wants Casualty authority (for Tech E&O), the DRLP must be licensed in Casualty. GROUNDED · Fenwick
2. The DRLP gates the entity’s footprint. The entity can only apply for licenses in states where the DRLP is already licensed. Expand the DRLP first; the entity follows. GROUNDED · Westmont
3. Personal liability. The DRLP is liable for any insurance-law violations by the entity. This is real exposure, not a formality. GROUNDED · Fenwick

Some states require the DRLP to be an officer

DRLP requirements vary by state, and some states require that the DRLP be an officer of the entity. GROUNDED · Fenwick

VERIFY — confirm before you rely on it

whether WA / CA / NY require the DRLP to be a corporate officer, how many DRLPs are required, and the affiliation-notice/termination filing rules · source: WA OIC / CA DOI / NY DFS entity-licensing rules + the NAIC Uniform Application instructions.

What this means for Glacis (Joe as DRLP)

The cleanest structure for the Glacis MGA: Joe is the licensed individual and serves as the entity’s DRLP. That makes the dependency chain explicit:

Because Joe (the DRLP) is personally liable for the entity’s insurance-law violations, the honest-sourcing discipline of this academy isn’t academic — it’s the same governance posture the MGA itself must run on. This dovetails with the AI compliance story in 14 AI insurance regulation.

Common exam framing

• “What must a business entity have to obtain a producer license?” → at least one DRLP licensed in the same line. GROUNDED · Fenwick
• “Who is liable for the entity’s insurance-law violations?” → the DRLP. GROUNDED · Fenwick
• “Can an entity be licensed in a state where its DRLP is not licensed?” → No. GROUNDED · Westmont

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