Validate Producer Credentials


Before a commission transaction is paid to a producer, their contract status, license status, appointment status, Errors & Omissions status, and product authority will be validated as governed by the Credential Control Table. If any of these credential elements are not met and the control table indicates that the credential element “impacts commission suppression”, then a commission transaction will be suppressed unless overridden by a designated user. The reason for suppression, Expired License, Expired E&O, etc., will be noted on the producer’s commission statement. A producer’s background investigation results will influence his or her contract status (i.e. failure of a background check will likely result in a terminated or denied contract status that will suppress commissions).

Suppressed commission transactions will be held for a predetermined time period or until the missing or expired credential elements are indicated as received and current by a designated user. After the predetermined time period, suppressed payments will be forfeited.

The Credential Control Table may reflect some states’ regulations that forbid commissions to be paid to producers with inactive licenses. Such commissions will be immediately forfeited and not subject to suppression. If a producer’s license is later reinstated, then affected commission transactions presented for payment after the reinstatement date will be paid.

For those situations where one or more license and appointment types are acceptable for a given product type, then a commission transaction will be suppressed/forfeited only if all acceptable types are noted as inadequate.

If a producer’s contract is in dispute, then a user may suspend their contract status until the dispute is resolved. A suspended contract status will result in commission suppression as described above.

For every payment suppression/forfeiture instance, ACom3 will generate user-defined correspondence to the producer explaining why payment was suppressed.

Once a commission transaction is suppressed, ACom3 will validate the various credential elements.