IA| The Iowa Insurance Division has issued Bulletin 25-02 in response to a rise in complaints about unauthorized enrollments and plan changes in ACA Marketplace insurance, often caused by the misuse of National Producer Numbers (NPN overrides) by unappointed agents submitting applications under the credentials of appointed agents, which violates Iowa insurance laws and constitutes fraud. The Division warns that agencies, agents, and insurers must ensure all participating agents are properly licensed and appointed, implement robust internal controls, and reject or correct applications from unappointed agents to avoid disciplinary actions such as fines, investigations, or license revocation. The Division is committed to ongoing enforcement and urges anyone aware of these practices to report them directly for further investigation.
Three main bullet points:
- Unappointed agents using NPN overrides to submit Marketplace insurance applications is a growing problem, leading to unauthorized enrollments and potential consumer harm.
- This practice violates Iowa insurance laws, and both agencies and agents involved may face serious penalties, including fines and license suspension or revocation.
- Agencies and insurers must ensure all agents are properly licensed and appointed, implement compliance procedures, and report violations to the Iowa Insurance Division.