Carriers do not appoint a brokerage on its word. Before a carrier extends a contract, its compliance staff verifies the brokerage's licenses, reads its procedures, and asks for records. Producers can apply the same scrutiny before signing with that same brokerage, but nobody hands them the checklist. This article publishes it. Every item below is something a carrier reviewer checks, translated into a question a producer can ask.
Why publish the carrier reviewer's checklist?
Because the standard should be the same in both directions. A brokerage asks you for your license, your National Producer Number, your errors and omissions certificate, and a background authorization before it submits your paperwork to a carrier. You are entitled to ask the brokerage for the equivalent before you sign its contract. A brokerage that passes carrier reviews already has these answers written down, so the request costs it nothing.
The checklist has three parts: licensing, compensation, and compliance records. Work them in that order, because a brokerage that fails the first part does not need the other two.
What should you verify about licensing status?
Insurance agencies are licensed as business entities, separately from the individuals who work in them. Verify both.
The agency license
Every state where the brokerage transacts business should show an active business entity producer license with the lines of authority that match what it places. Ask the brokerage for its license number in your state and in its home state, then look both up yourself in the state insurance department's public license search. Do not rely on a screenshot.
The record should show the license as active, the lines of authority, the expiration date, and any disciplinary history. The National Insurance Producer Registry's public lookup consolidates the same information across states and is a second place to check.
The designated responsible licensed producer
Each agency license is tied to a licensed individual who is responsible for the agency's compliance; the title varies by state, and designated responsible licensed producer is a common one. That person's individual license should be active, in good standing, and held in the same lines. A responsible producer with a disciplinary history is a fact worth knowing before you sign.
What the record tells you
| What you see | What it means |
|---|---|
| Active license, lines match, no actions | The baseline. Proceed to the next part. |
| Active license, lines do not match what the brokerage places | Ask. The brokerage may use an affiliated entity for those lines; get that entity's license number too. |
| Pending renewal or recently expired | Ask when renewal was filed. A lapse is a reason to wait. |
| Disciplinary action on record | Ask for the order and read it. Some actions are administrative; some are not. |
| No record found under the name given | Ask for the exact legal entity name and license number. Do not proceed until the record is found. |
What does a transparent commission schedule look like?
A commission schedule is transparent when it is written, specific, and complete enough that you could compute your own compensation from it without asking anyone. The absence of any one of those three is a signal.
Written. Each carrier's schedule exists as a document, and you can have a copy before you sign. Verbal descriptions are not a schedule.
Specific. The schedule is per carrier and per product, and it states the contract level you hold. The same product can pay differently at different levels, so a schedule without your level stated is incomplete.
Complete. The schedule or the accompanying contract answers these questions:
- Who pays you: the carrier directly, or the brokerage after the carrier pays it?
- Are commissions paid as earned, or advanced against future premium? If advanced, what is the chargeback period and how are debit balances collected?
- How are renewal commissions handled, and what vesting applies?
- Is there an override above your level? There usually is in a hierarchy, and a brokerage that says so plainly is being straightforward.
- Are there bonus programs, and what conditions attach to them?
- Are there any fees charged to you for contracting, platform use, leads, or training?
| Transparent signal | Opaque signal |
|---|---|
| Schedule provided in writing before signing | Schedule available only after signing, or described verbally |
| Contract level stated on the document | Level implied or described relative to someone else's |
| Override acknowledged | Override denied or waved away |
| Fees listed, including zero | Fees discovered later |
| As-earned versus advanced stated clearly | Payment timing left vague |
The article on commissions, overrides, and vesting explains each of those terms in detail. For this checklist, the test is simpler: can you get it in writing, and is it complete?
Which compliance records are worth asking about?
A carrier reviewer asks a brokerage for records that prove its procedures exist and are followed. As a producer, you are not auditing the brokerage, but you are about to rely on its compliance infrastructure, so you should know what it has. Ask about these, and expect a short, specific answer to each.
- Entity-level errors and omissions coverage. Does the brokerage carry its own E&O, separate from the policies its producers carry?
- License and appointment tracking. How does the brokerage know when a producer's license expires or an appointment lapses? A system, a spreadsheet, or nothing?
- Advertising review. Must producers submit marketing materials for review before use? Who reviews them, and against what rules?
- Anti-money laundering program. For covered life insurance and annuity products, federal anti-money laundering rules (31 CFR Part 1025) require insurers to maintain a program, and carriers push training and reporting obligations down to brokerages and producers. Does the brokerage track completion?
- Complaint handling. Where do client complaints go, who responds, and is there a log?
- Privacy and data security. How is client information stored, who can see it, and how long is it kept?
- Written supervisory procedures. Does a document describe how the brokerage supervises its producers? Can you read it?
- Carrier review history. Has the brokerage been through carrier compliance reviews, and how did they go? The article on why carrier compliance reviews exist describes what those reviews involve.
What questions should you ask in writing?
Email works. It creates a record, and the form of the answer is as informative as the content.
- What is your legal entity name and your agency license number in my state and your home state?
- Who is your designated responsible licensed producer?
- Please send the commission schedule for each carrier I would be contracted with, showing my contract level.
- Are commissions paid as earned or advanced? What is the chargeback period?
- What vesting applies to renewals if I leave?
- What fees, if any, do I pay for contracting, platform access, leads, or training?
- Do you carry entity-level E&O? Do you require producer E&O, and at what point?
- How do you review advertising, track licenses and appointments, and handle complaints?
- What happens to my appointments and my clients if I terminate the contract?
What does a clean answer look like?
Short, specific, and documented. A brokerage that passes carrier reviews answers question one with a name and a number you can look up yourself, question three with attachments, and questions seven through nine with a sentence or two each because the procedures already exist. Hesitation, redirection to a recruiter, or an answer that arrives as a phone call rather than in writing are not disqualifying on their own, but they are information.