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.

1. Producer Appointment

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

1.2 Application Process

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

1.3 Appointment Maintenance

Requirement	Frequency	Action Required
E&O renewal	Annual	Upload new dec page to portal before expiry
License renewal	Per-state schedule	Portal flags licenses expiring within 60 days
Agency agreement re-execution	Every 3 years or upon material change	MGA will initiate
State appointment filings	At initial appointment	MGA files on your behalf; fees billed to your account

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.

2. Risk Appetite and Submission Eligibility

2.1 Lines of Business Available

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)

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

2.3 Geographic Restrictions

State	Restriction
Florida	GL only — no WC, no commercial auto
Louisiana	Referral required for all classes
California	Not currently available
New York	GL available; WC requires referral
Texas	Non-subscriber WC not eligible; traditional WC OK

3. Submission Requirements

3.1 Required Documents by Line

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

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

3.3 Completeness Standards

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

All required ACORD forms are fully executed (no blanks without explanation)
All required supplemental documents are attached
Loss runs meet the standards in §3.2
Named insured matches the legal business entity name and FEIN
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.

4. Quote Delivery and Acceptance

4.1 Turnaround Standards

Submission Type	Target Turnaround
Standard (≤ $25K premium, in-appetite)	2 business days
Complex (> $25K premium or referral)	5 business days
Rush (< 5 days to effective date)	Same or next business day (fee applies)
Renewal	30 days before expiry

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)

4.3 Accepting a Quote

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

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

5. Binding Authority and Subjectivities

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.

5.2 Common Subjectivities

Subjectivity	What to Submit
Signed application	Wet or electronic signature from named insured
Loss control inspection	Scheduled by MGA within 60 days of binding
Financial statements	Last 2 years, signed by owner or CPA
Equipment schedule	Itemized list with serial numbers and values
Driver MVRs	Current (within 30 days) for all drivers
Payroll audit	Prior-year audit from last WC carrier

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

6. Policy Delivery Checklist

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

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

7. Endorsement Request Procedures

7.1 Submitting an Endorsement

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

7.2 Endorsement Types and Processing Times

Endorsement Type	Documentation Required	Processing Time
Named insured change	Written request + explanation	2 business days
Additional insured (blanket)	Auto-endorsement — no review needed	Instant
Additional insured (specific)	Certificate holder info	1 business day
Limit increase	Updated application, re-rate	3 business days
Location add/remove	Schedule update with addresses	2 business days
Vehicle add/remove	VIN, driver info, MVR if new driver	1 business day
Coverage deletion	Signed authorization from insured	2 business days

8. Cancellation and Non-Renewal Handling

8.1 Insured-Requested Cancellations

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.

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

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.

8.4 Non-Renewal Procedures

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

9. Commission Structure and Payment Schedule

9.1 Standard Commission Rates

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

Line	New Business	Renewal
General Liability	15%	12%
Workers’ Compensation	10%	10%
Commercial Auto	12%	10%
Package (GL + Auto)	13%	11%

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)

9.3 Payment Schedule

Statement Period	Statement Available	Payment Date
January 1–31	February 7	February 15
February 1–28/29	March 7	March 15
March 1–31	April 7	April 15
(continues monthly)

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

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.

10. Errors & Omissions Requirements

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

10.2 Maintaining E&O Coverage

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

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

11. Surplus Lines Procedures

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.

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.

11.3 Surplus Lines Tax and Stamping

State	Tax Rate	Stamping Office	Stamping Fee
Georgia	4.0%	GSLA	0.2%
North Carolina	5.0%	None required	N/A
South Carolina	6.0%	None required	N/A
Tennessee	5.0%	None required	N/A
Virginia	2.25%	None required	N/A

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.

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.

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)

12. Key Contacts

Function	Contact
New appointments	appointments@openinsure.dev
Underwriting questions	uw@openinsure.dev
Claims reporting	fnol@openinsure.dev
Commission disputes	commissions@openinsure.dev
Compliance / licensing	compliance@openinsure.dev
Technical support (portal)	support@openinsure.dev
Your assigned MGA rep	See your Agency Agreement

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.