NAIC, Model 218 & the Uniform Application

The NAIC

The National Association of Insurance Commissioners (NAIC) is a standard-setting support organization, governed by the chief insurance regulators of all 50 states and five US territories. It does not regulate insurers directly (the states do) — it creates model laws, standards, and shared infrastructure that the states choose to adopt. GROUNDED · Fenwick

The NAIC’s role in licensing:

• Published the Producer Licensing Model Act (Model 218) — the template that created much of the cross-state uniformity. GROUNDED · Fenwick
• Developed the Uniform Licensing Standards and Uniform Application and encouraged states to adopt them. GROUNDED · Fenwick
• Also publishes other model laws and bulletins (e.g., the Managing General Agents Act, Model #225, and the AI Model Bulletin — see 14 AI insurance regulation). STABLE

A “model law” is not binding by itself. It only has force where a state enacts it. That’s why the country has a common backbone and state-by-state variation. STABLE

Model 218 (Producer Licensing Model Act)

Model 218 standardizes producer licensing — definitions, license types, lines of authority, reciprocity, and the application. Broad adoption is why the conceptual exam content is portable across WA/CA/NY: the underlying framework is the same even where the numbers differ. GROUNDED · Fenwick

VERIFY — confirm before you rely on it

the current adoption status / amendments of Model 218 and Model #225 in WA / CA / NY · source: NAIC model-law database (naic.org) + each state’s insurance code.

The Uniform Application — what it asks

Most states accept the NAIC Uniform Application. Knowing its contents is high value: it’s the actual form you’ll file, and the exam tests several of its concepts (especially DRLP and lines of authority). It requires: GROUNDED · Fenwick

1. General biographical information — name, address, SSN (individuals) or FEIN (entities).
2. Agency / business-entity affiliations (for individual producers). Roughly half of states require entities to notify the DOI of affiliated producers and of their termination.
3. Designated/Responsible Licensed Producer(s) — “DRLP” (for business entities). The linchpin of entity licensing — see 01 The DRLP.
4. Owners, partners, officers, and directors (entities).
5. Employment history for the last five years (individuals).
6. Selection of license type (agent, broker, producer, surplus lines producer) and lines of authority (life; accident & health/sickness; property; casualty; personal lines; variable life/variable annuity).
7. Background questions — criminal history, bankruptcy, other financial liabilities including child-support arrearage.

Memorize these seven components — they recur across the licensing pages and are exactly what the application page covers in detail: 04 The application.

How it connects

• The license type + lines of authority choice (#6) decides what you can sell — see 03 Lines of authority.
• The DRLP requirement (#3) is what makes entity licensing possible — see 00 Business-entity licensing.
• The background questions (#7) tie to the 03 Background check step.

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