WI| The Office of the Commissioner of Insurance (OCI) has issued a bulletin addressing the misuse of the “NPN override” function on Enhanced Direct Enrollment (EDE) platforms. This function allows intermediaries not appointed with an insurer to submit applications using another intermediary’s National Producer Number (NPN). The OCI considers this practice a violation of Wisconsin law, specifically Wis. Stat. § 628.034(1)(a), which prohibits misrepresentations related to insurance contracts.
Key points:
- Misuse of NPN Override: Using the NPN override by unappointed intermediaries violates Wisconsin law and appointment requirements, as outlined in Wis. Stat. §§ 601.31(1)(n), 628.11, 628.40.
- Proper Business Exchange: Intermediaries cannot exchange business by bypassing appointment requirements, such as routing sales through a single appointed intermediary, as per Wis. Admin. Code § Ins 6.57 and Wis. Admin. Code Ins § 6.66.