Obtaining a Certificate of Authority is like anything else you achieve as an insurance professional, once a new level has been reached, there is a varying degree of due diligence required to maintain that security. Allowing ILSA’s support for your licensure will help eliminate the chance of a descent in success.
Due to the current climate of the economy, there is no room for errors which can result in fines and/or time lost for selling. It’s important to know that maintaining Certificates of Authority is very similar to an insurance license as there are on going obligations to be met. When you’ve reached the decision to cease business in a state, there’s a varying protocol to follow. Neglecting to follow each state’s set protocols can result in a compliance meltdown if you’re not aware of those “continued” obligations.
As with most states, each Secretary of State Office levies their own set of regulations concerning the Certificate of Authority and the withdrawal process. Business entities can face a number of unfortunate conditions when they do not follow a state’s requirements to properly remove their name from state systems.
* Continued obligations to file Corporate and/or Annual Tax Returns
* The accumulation of delinquent reports could cause your entity to fall into bad standing with the Secretary of States Office where you hold the Certificate of Authority
* Officers, Owners or Partners can be held responsible for failing to handle there commitments appropriately.
If you are asking yourself the question, “How do I prevent these issues?” then you are one step closer to taking control and avoiding compliance pitfalls that will ultimately follow your business forever. When you’re ready to start making changes to the geographical landscape of your business presence, ILSA knows each trail and can provide you with the guidance needed to stay on track.
Tags: Certificate of Authority, Compliance, Insurance licensing, Secretary of State
