The Mass. Division of Insurance says it will go live this month
On February 25, 2022, the Massachusetts Division of Insurance announced that it will be transitioning to Sate Based Systems on March 16, 2022. For those unfamiliar with the term State Based Systems (“SBS”), it describes an electronic system designed in partnership with state regulators and built by the NAIC to automate state-based insurance regulation operations.
Originally conceived in 2003, the SBS is currently used by 50% of NAIC members, with Massachusetts becoming the 32nd state to join the system. In the official announcement of the transition issued in 2020, Commissioner Anderson outlined the reasons behind the Commonwealth’s decision.
“Undoubtedly, COVID-19 has demonstrated to me and our department leaders the importance of online automated processing. Our adoption of SBS will enable us to more effectively regulate Massachusetts’ $60 billion insurance industry by offering more business-critical online tools including the ability to manage all of our license applications and company appointments via the National Insurance Producer Registry (NIPR),” said Massachusetts Division of Insurance Commissioner, Gary D. Anderson. “Once implemented, SBS will support and improve several critical functions of the division, resulting in more convenient, modern and uniform transactions for both licensees and consumers.”
A few key facts to know:
So what does this mean for you as an insurance professional in Massachusetts? The following are just some of the changes that one should be aware of:
- All individual and current business entity (agency) license numbers are changing to National Producer Number (NPN). Click https://nipr.com/help/look-up-your-npn to find your NPN.
- All Massachusetts appointments and terminations must be submitted via NIPR.
- All active companies will be assigned a new Massachusetts Company Number. Look up your new Company Number using the free Lookup tool on the SBS website. Your NAIC Company Number (NAIC CoCode) remains the same.
- All licensees requiring Continuing Education (CE) when renewing their Massachusetts insurance license must be CE Compliant before submitting their renewal application. Use the “Print Education Transcript Button” at www.statebasedsystems.com to review your CE requirements and compliance status.
- Massachusetts Provider Numbers and Course Numbers will no longer be preceded by a letter. Use the free Lookup tool to find your new Provider and Course Number.
A DOI infographic outlining the transition
The DOI published the following infographic to outline all of the major changes and dates to know about the transition: