Producer Manual

This manual governs the operational relationship between appointed producers and OpenInsure (operating as the managing general agent). All producers must comply with the procedures herein as a condition of appointment. Contact your assigned MGA representative with questions.

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1. Producer Appointment

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1.1 Eligibility Requirements

To be appointed, your agency must hold and maintain:

• A valid insurance producer license in every state where you intend to transact business on our programs
• An active Errors & Omissions (E&O) policy with minimum limits of $1,000,000 per occurrence /$2,000,000 aggregate
• A FEIN (Federal Employer Identification Number) registered to the agency
• No material regulatory disciplinary action within the preceding 5 years

Caution: Producers operating without a current license in a binding state violate state insurance law. The MGA will not bind coverage for transactions in states where you are not properly licensed.

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1.2 Application Process

1. Complete the Producer Appointment Application — available in the producer portal under Agency → Apply for Appointment 2. Upload a current copy of your E&O declarations page 3. Provide your NPN (National Producer Number) and state license numbers for each state 4. Submit — the compliance team reviews within 3 business days 5. You will receive an Appointment Confirmation email and a counter-signed Agency Agreement 6. Your portal login is activated on the appointment effective date

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1.3 Appointment Maintenance

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1.4 Termination of Appointment

Appointment may be terminated by either party on 30 days written notice. The MGA may terminate immediately for cause, including:

• Misrepresentation on an application
• Binding outside authority
• Licensing lapse
• Failure to maintain required E&O coverage
• Regulatory action

Upon termination, in-force policies remain serviced until expiry or transfer. New submissions are immediately blocked.

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2. Risk Appetite and Submission Eligibility

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2.1 Lines of Business Available

General Liability Target classes: Artisan contractors, retail, light manufacturing, hospitality (limited), janitorial, landscaping, staffing agencies, professional services (select) Minimum premium: $1,500 (direct bill) /$2,500 (agency bill) Maximum premium per policy: $250,000 (above requires referral) Policy limits available: $1M/$2M (standard), $2M/$4M (available with referral) Workers’ Compensation Target classes: Service industries, light manufacturing, retail, office, healthcare (select), transportation (non-long-haul) Minimum premium: $3,500 (experience mod required above$10,000) Maximum payroll per submission: $15,000,000 (above requires referral) States: All except monopolistic (ND, OH, WA, WY) and FL for certain classes Commercial Auto Target classes: Private passenger, light commercial, contractor vehicles (up to 1 ton) Excluded: Long-haul trucking, livery/TNC, dealer open lot Minimum premium: $2,000 Maximum fleet size: 25 units (above requires referral)

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2.2 Unacceptable Risks (All Programs)

The following risks will not be quoted under any circumstances:

• Accounts with open or unresolved regulatory actions (OSHA, EPA, DOL)
• Prior policy cancellations for non-payment within the preceding 24 months
• Risks with conviction-level fraud on a prior insurance application
• Businesses operating in sanctioned countries or with sanctioned individuals (OFAC)
• Residential construction or roofing contractors (primary work)
• Fireworks, ammunition, or explosives manufacturers or distributors
• Cannabis operations (any use or proximity)
• Adult entertainment or escort services

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2.3 Geographic Restrictions

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3. Submission Requirements

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3.1 Required Documents by Line

General Liability Always required:

• Completed ACORD 125 (Commercial Insurance Application)
• 5-year currently valued loss run (prior carrier, all GL policies)
• Supplemental application if premium exceeds $25,000

Required for certain classes:

• Contractors: ACORD 140 (Contractors Supplement)
• Products liability: product description and annual sales data
• Professional liability: ACORD 807

Workers’ Compensation Always required:

• Completed ACORD 130 (Workers’ Compensation Application)
• 5-year currently valued WC loss run
• Current experience modification worksheet (if EMR applicable)
• Payroll breakdown by class code

Required for certain classes:

• Healthcare: staff credentialing summary
• Construction: subcontractor management procedures

Commercial Auto Always required:

• ACORD 137 (Commercial Auto Application)
• Motor Vehicle Records (MVR) for all drivers
• 3-year auto loss runs
• Vehicle schedule with VINs and values

For fleets over 10 units:

• Fleet safety program documentation
• Telematics usage disclosure (if applicable)

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3.2 Loss Run Standards

Loss runs must meet all of the following criteria:

• Currently valued — within 90 days of submission date
• 5-year history — for each line being submitted
• Prior carrier letterhead — no agent-produced summaries accepted
• All claims included — open, closed, and reserved; zero-loss certifications acceptable if signed by prior carrier
• Policy period identified — inception and expiration dates shown for each year

Tip: For new ventures (less than 3 years in business), provide all years available and a signed statement of no prior losses for earlier periods.

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3.3 Completeness Standards

Incomplete submissions are returned without review. An application is considered complete when:

1. All required ACORD forms are fully executed (no blanks without explanation)
2. All required supplemental documents are attached
3. Loss runs meet the standards in §3.2
4. Named insured matches the legal business entity name and FEIN
5. Effective date is at least 5 business days in the future

Submissions received with less than 5 business days to effective date are considered rush submissions and subject to a $150 rush processing fee billed to your account.

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4. Quote Delivery and Acceptance

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4.1 Turnaround Standards

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4.2 Quote Contents

Every quote issued includes:

• Named insured and policy period
• Line of business and carrier
• Coverage limits and deductibles
• Subjectivities (conditions to binding)
• Premium breakdown (policy premium, taxes, fees)
• Payment plan options
• Quote expiration date (30 days from issue, unless otherwise stated)

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4.3 Accepting a Quote

1. Log in to the producer portal and open the submission 2. Review the quote letter and confirm coverage terms with your client 3. Collect any required subjectivities (signed applications, photos, etc.) 4. Click Bind Request in the portal 5. Attach all subjectivity documentation 6. Submit — underwriting reviews and binds within 1 business day (same day for standard risks) 7. The policy number, binder, and dec page are emailed to you and your client simultaneously

Caution: You may NOT verbally bind coverage. All binds must be processed through the portal. Verbal representations of coverage are not binding on the MGA.

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4.4 Quote Expiration

Quotes expire on the date shown on the quote letter. To reinstate an expired quote:

• If no change in risk, request re-rate — turnaround within 24 hours
• If risk has changed (new loss, business change), a full re-underwrite is required
• No expired quote may be backdated

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5. Binding Authority and Subjectivities

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5.1 Producer Binding Authority

As an appointed producer, you have no independent binding authority. All binds are processed by the MGA underwriting team after your bind request is submitted and reviewed. This protects you from inadvertent coverage gaps.

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5.2 Common Subjectivities

Failure to satisfy subjectivities within the stated timeframe may result in mid-term cancellation.

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6. Policy Delivery Checklist

Upon binding, you are responsible for delivering policy documents to your client. Document delivery in your agency management system.

1. Policy documents received — confirm binder, dec page, and policy jacket are in the portal (typically within 2 business days of bind) 2. Deliver to insured — email or physical delivery within 10 days of effective date (varies by state) 3. Confirm receipt — obtain written acknowledgment of receipt from insured (required for E&O protection) 4. Explain coverage — review key exclusions and conditions with insured; document the conversation 5. Address surplus lines requirements — see §11 if policy is non-admitted 6. File documents — retain in your agency management system for minimum 7 years

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7. Endorsement Request Procedures

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7.1 Submitting an Endorsement

1. Open the policy in the producer portal 2. Click Request Endorsement 3. Select the endorsement type from the dropdown 4. Provide effective date, change details, and supporting documentation 5. Submit — UW reviews and issues within 2 business days for routine changes

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7.2 Endorsement Types and Processing Times

Tip: Blanket additional insured endorsements are pre-approved for all GL policies — issue certificates immediately without requesting an endorsement.

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8. Cancellation and Non-Renewal Handling

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8.1 Insured-Requested Cancellations

1. Obtain a signed cancellation request from the named insured (required in all states) 2. Submit through Policy → Request Cancellation in the portal 3. Attach the signed request 4. Specify the cancellation effective date (must be on or after today) 5. Confirm return premium method: pro-rata or short-rate (per policy terms)

Return premiums are processed within 10 business days and credited to your account or issued directly to the insured per your agreement.

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8.2 Non-Payment Cancellations

Non-payment cancellations are initiated automatically when:

• A direct-bill payment is 10 days past due (notice of intent to cancel issued)
• An agency-bill payment is 30 days past due (notice of intent to cancel issued)

Your obligations:

• Notify the insured immediately upon receiving a non-pay notice
• Collect payment and submit through the portal to reinstate before the cancellation effective date
• Reinstated policies require no lapse in coverage documentation from insured

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8.3 MGA-Initiated Cancellations

The MGA may cancel policies for:

• Material misrepresentation on the application
• Discovery of unacceptable risk conditions
• Loss of underlying carrier authorization

You will receive 30 days advance notice (or the statutory minimum if shorter). Assist the insured in obtaining replacement coverage.

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8.4 Non-Renewal Procedures

1. The portal flags policies for renewal 90 days before expiry 2. At 60 days out, submit updated risk information and loss runs 3. If the MGA is non-renewing, you receive a non-renewal notice 60 days before expiry (or per-state minimum) 4. If you choose not to renew on behalf of the client, submit a Producer Non-Renewal Notice through the portal 5. Assist the insured in obtaining replacement coverage before expiry

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9. Commission Structure and Payment Schedule

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9.1 Standard Commission Rates

Commission rates are defined in your Agency Agreement. Standard rates by line:

Caution: These are illustrative rates. Your actual rates are specified in your executed Agency Agreement. Contact your MGA representative if you do not have a copy.

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9.2 Commission Calculation

Commission is earned on written premium (gross premium less taxes and surplus lines fees). Commission is:

• Booked on the policy effective date
• Adjusted on endorsements (pro-rated for the remaining policy term)
• Charged back on cancellations proportionally (pro-rata for pro-rata cancellations; short-rate charge for short-rate cancellations)

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9.3 Payment Schedule

Payments are issued by ACH to the bank account on file. Update your ACH information in Agency → Banking.

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9.4 Commission Disputes

Disputes must be submitted within 60 days of the statement date. Submit disputes through Commission → Dispute a Statement in the portal with supporting documentation.

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10. Errors & Omissions Requirements

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10.1 Minimum E&O Requirements

Your E&O policy must provide:

• Minimum limits: $1,000,000 per claim /$2,000,000 aggregate (no exceptions)
• Retroactive date: Must cover prior acts to your agency’s formation date
• Extended reporting period: At least 12 months available upon policy termination
• Carrier rating: A- (Excellent) or better per A.M. Best

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10.2 Maintaining E&O Coverage

1. Upload your current E&O dec page to the portal at each renewal 2. Set a reminder 90 days before your E&O expiry to begin renewal 3. Notify the MGA immediately if your E&O coverage lapses for any reason 4. A lapsed E&O policy triggers an immediate suspension of your binding authorization until coverage is reinstated

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10.3 E&O Best Practices

• Document every client interaction in your agency management system
• Confirm coverage in writing — never verbally represent that coverage is in force
• Deliver policy documents promptly and retain proof of delivery
• Explain key exclusions at policy delivery and document the conversation
• Never bind retroactively — if a loss has occurred, notify the MGA before proceeding

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11. Surplus Lines Procedures

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11.1 When Surplus Lines Applies

Policies placed on non-admitted paper require surplus lines handling. All non-admitted placements are clearly marked in your quote letter and policy documents.

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11.2 Diligent Search Requirements

Most states require documented effort to place coverage with admitted carriers before placing surplus lines. The MGA maintains its own diligent search records, but you may be required by your state’s surplus lines association to conduct and document your own search.

Caution: Requirements vary significantly by state. Consult your state’s surplus lines association for specific diligent search requirements before placing non-admitted business.

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11.3 Surplus Lines Tax and Stamping

Rates as of 2026. Verify current rates with your state surplus lines association. The MGA calculates and remits surplus lines taxes on your behalf. These are shown as line items in the premium breakdown.

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11.4 Surplus Lines Signed Statements

Most states require the insured to sign an acknowledgment that coverage is being placed on non-admitted paper. The portal generates the required form for your state. Collect a signed copy before binding and upload to the portal.

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11.5 Policy Delivery Requirements

Non-admitted policies must be delivered with:

• The surplus lines disclosure on the declarations page
• The signed surplus lines acknowledgment form (if required by state)
• The full policy jacket (non-admitted policies are not subject to state form approval but must be delivered)

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12. Key Contacts

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This manual is effective January 1, 2026 and supersedes all prior versions. OpenInsure reserves the right to amend this manual at any time. Material changes will be communicated with at least 30 days advance notice.