Flowing Override Commissions to an Agent's Corporation
Agents that request NLG to pay commissions to their corporation or LLC must first make sure the entity has been issued an agency license by their resident state department of insurance. Next, the agent will need to have the corporation or LLC appointed with NLG with the executive/principle of the corporation as the underlying licensure.
To achieve this, go to the NLG appointment website - and still using their individual legal name - complete the appointment application "type PAC”. The agent will be prompted to enter the corporation name and Tax ID information. At that time, the agent can enter the corporation checking account information. Once both the individual and corporation/LLC are appointed with NLG, the agent can flow their personal and override commissions to their corporation banking account.
Agents still maintain their personal appointment, compliance, and licensure as only an individual can write business. The agent’s corporation would only be a place to receive commissions and the corporation would never write business.
Regarding commissions paid to an agent by PFA - Contact Commissions@pfaoffice.com to find out their specific requirements.
The agent’s individual licensed name will remain in P-Trac. We use agent’s individual licensed names and not corporate names in P-Trac. We only track business written by individuals.
Agents need an active license in any state in which they write business to cover the date the business is written on. For reference, these states require a non-resident agent or corporation to be licensed and appointed on date of business written in order to receive override commissions:
California
Florida
Georgia
Kentucky
Louisiana
Massachusetts
Montana
New Mexico
North Carolina
Pennsylvania (must be appointed in PA by NLG prior to soliciting business)
South Dakota
Texas
Virginia
West Virginia
Wisconsin
This is currently how NLG interprets the laws for override licensure and is subject to change based on state regulations.