Correction: Producer Licensing Model Act (PLMA) Guidelines

We wish to inform you of an important update concerning our previous communications about the Producer Licensing Model Act (PLMA) guidelines.

There was an error in our previous communications. Contrary to what was mentioned:

• Utah is a PLMA state.
• Texas is not a PLMA state.

We deeply regret any confusion this may have caused and appreciate your understanding. Below, you’ll find a graphic of a map clearly denoting non-PLMA states by color for your easy reference.

We strive to ensure that our information is accurate and up-to-date. We appreciate your continued partnership and understanding as we correct this oversight.

Thank you for your attention to this matter.

If you need a refresher on PLMA updates, view our corrected communication below. 

PLMA Changes

What are the changes?
In case you’ve missed our previous communications, we have made changes to our commission structure to stay in compliance with our interpretation of the Producer Licensing Model Act (PLMA). Applications from the current states (Florida, Georgia, Massachusetts, Montana, North Carolina, New Mexico, Pennsylvania, South Carolina, Virginia, Wisconsin, and West Virginia) will experience a positive change because we are now accepting business if the writing agent and highest commission earning level are licensed at or before the time of application. However, any agents in the hierarchy that are not licensed in the state at time of application will not receive commission. That commission will be paid to the next licensed level agent.

There are 5 additional states (California, Kentucky, Louisiana, South Dakota, and Texas) that had been following PLMA guidelines prior to the most recent change. However, these states are now considered under the non-PLMA guidelines, and commissions will be handled as above (any agents in the hierarchy that are not licensed in the state at time of application will not receive commission; commission will be paid to the next licensed level agent).

Why did we make these changes?
Updating our rules for these 16 non-PLMA states allows us to accept business from agents that don’t have the appropriate state licensing through their entire hierarchy, resulting in coverage for more families.

When are these changes effective?
All of these changes are in effect as of August 16, 2023.

Are there any other changes for these impacted states?
Aside from the change described above, there are no other changes happening in any of the impacted states.