If a producer wishes to remove a line of authority from their license, what action should they take?

The correct action for a producer wishing to remove a line of authority from their license is to submit an appropriate form to the commissioner and return the license for amendment. In Colorado, regulatory processes are in place to maintain accurate records regarding producers’ licenses. This ensures the integrity of the insurance market and facilitates proper oversight by the insurance commissioner.

When a producer decides to no longer offer a certain line of insurance, the official procedure requires notifying the regulating authority, which is the commissioner in this case. By submitting the appropriate form, the producer provides the necessary information for the amendment process. Returning the license allows the commissioner to update the producer's qualifications and prevent any confusion or potential issues that might arise if a producer were to operatively continue with a line of authority they no longer possess.

While notifying clients about the change may be good practice in managing business relations, it does not fulfill the regulatory requirement to amend the producer's license formally. Ceasing to sell that type of insurance immediately or reapplying for a new license are not aligned with the proper procedures required to amend a license; instead, the amendment is specifically designed to update the authority on the existing license rather than requiring a new license entirely. Thus, submitting the form and returning the license is the most accurate