E&O TIP: Know What Activities an Unlicensed CSR Can Perform
In general, unlicensed Customer Service Representatives (CSRs) are not able to sell, solicit, bind, or negotiate insurance, nor should they recommend, interpret, or discuss coverages with clients.
They can act as a go-between for the licensed producer and the client for certain activities – however, matters such as coverage advice or coverage changes must always be reviewed and handled by the licensed producer.
Examples of acceptable unlicensed CSR activities may include*:
- Providing general information about the agency or producer, such as contact information.
- Providing clients with requested forms such as applications, declination forms, etc. These forms can also be received by the CSR, but must be provided to the producer for review and further action. They can also provide things like brochures and buyers guides, if requested.
- Requesting information from clients at the instruction of the producer.
- Providing details to clients about their active policies. For example, supplying a policy number, effective dates, or stated limits, without interpreting coverage or answering “What if?” questions.
- Scheduling appointments for clients to meet with the producer.
- Filing documents that have already been reviewed by the producer, plus general file maintenance.
- Receiving requests for changes to coverage – however, CSRs should be clear to the clients that the request must be reviewed by a producer before any changes are made.
- Accepting notice of claims and forwarding claim information to the carrier or producer, without offering opinions or advice regarding coverage or claim outcome.
*Keep in mind that licensing requirements and permitted activities may vary by state. Agencies are responsible for confirming that their internal procedures and their unlicensed CSRs activities comply with applicable laws, including state insurance laws.