Business Entity Licenses

Last Updated: October 6, 2017

Intermediary Firm License

In Wisconsin, a "firm" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. Refer to s. Ins 6.58, Wis. Adm. Code, for more information.

Wisconsin does NOT require a firm to be licensed; however, the option to obtain the license is available.

A firm has no authority to transact insurance business in our state—the authority to transact insurance business lies with the Designated Responsible Licensed Producer (DRLP) and the lines of authority they actively hold.

Required Registration with the Wisconsin Department of Financial Institutions (DFI):
The Corporation Section of the Division of Corporate & Consumer Services at the DFI is the filing office for the organizational instruments to create corporations, limited partnerships, limited liability partnerships, and limited liability companies, as well as documents to amend those charters in some respect or other. This unit also licenses foreign (out-of-state) organizations desiring to transact business in Wisconsin. To contact the Corporations Division by telephone, please call (608) 261-7577.

Initial Application Requirements

  1. Must designate a licensed responsible producer (DLRP) for the firm's compliance with the insurance laws, rules and regulations of this state.
  2. Nonresidents must confirm active resident license in resident state to apply for reciprocal license in Wisconsin.
  3. Apply via www.nipr.com or through an NIPR authorized business partner.
  4. Pay initial license fee of $100.

Tip: If the business entity or any owner, partner, officer or director of the business entity, or member or manager have administrative actions in any state—even if they are not recent—be sure to disclose them on the license application. Also disclose any child support or tax delinquencies, or any criminal charges or convictions. If unsure whether something needs to be reported, we encourage to err on the side of reporting. Disclosure will avoid a license denial based on failing to report.

Renewal Requirements

Online license renewal open 60 days prior to expiration which is February 15th of the next even-numbered years.

  1. Apply via www.nipr.com or through an NIPR authorized business partner.
  2. Pay biennial license renewal fee of $35 for residents and $70 for nonresidents.

Business Entity Licenses are not eligible for reinstatement. If the entity license becomes inactive, entity must re-apply via www.nipr.com or an NIPR authorized business partner and pay the initial licensing fee of $100.

Applicants Please Read: Once your application has been submitted to the State of Wisconsin, you will have 90 days to submit any required information/requirements. Failure to supply the required documentation will cause your application to be CLOSED as EXPIRED. Fees are non-refundable.

Select the following license types to view initial licensing requirements:

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Agent Commissions

No intermediary or insurer may pay any compensation or reimburse out-of-pocket expenses to any unlicensed individual. No individual may accept compensation for services performed as an intermediary unless that individual is licensed. An agent can assign his or her commissions to a firm. However, an agent cannot share his or her commission unless it complies with s. 628.61, Wis. Stat.

Exceptions:

  • The payment of deferred commissions to a formerly licensed agent. Deferred Commisions: Commissions paid at a later date or over time. So, if an agent has commission due from the company and the license is terminated, the company can still pay the agent what they earned while licensed.
  • When the Proper Exchange of Business is between an agent and broker lawfully licensed in this state.

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Proper Exchange of Business

The insurance industry in Wisconsin has exchanged business on an informal basis for years. The rule acknowledges the need for certain exchanges of business and establishes the procedures to be used.

The proper exchange of business means the forwarding of insurance from one licensed agent who cannot place the business with any of the companies with which he is listed to another licensed agent listed with a company which will write that piece of business. The agent forwarding the business may split the commission involved. Proper exchange of business differs from brokerage because of its occasional and exceptional nature. Refer to s. Ins 6.66, Wis. Adm. Code for more information.

  1. Reasons: Business may only be exchanged for certain reasons specified in the rule. The agent may properly exchange business if the companies with which he or she is listed:
    1. Refuses to accept the business because of capacity problems,
    2. Refuses to accept the risk or some part of it, or
    3. Imposes onerous conditions on the insured (i.e., excessive premium).
  2. Procedure:
    1. The agent forwarding the business must be licensed in that line of insurance, and the business must have arisen in the regular course of his or her own business.
    2. The client must know that another agent will be involved in the transaction. Therefore, the application must be signed by each of the agents who handled it. If no application is completed, the names of the agents involved in the transaction must appear on the policy. These rules will ensure that clients know what company the business is placed with and what agents are involved in the transaction.
  3. Limits: Because proper exchange of business only occurs occasionally, guidelines define how often it may occur. An agent will exceed the occasional exchange of business if more than 5 insurance risks per calendar year are placed with any single insurer with which he is not listed, or if the agent exchanges more than 25 insurance risks per calendar year for all insurers.

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