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Relate Producers, Policies, and Legal Entities

Learning Objectives 

After completing this unit, you’ll be able to:

  • List and describe the different types of producers.
  • Explain the relationship between producers, policies, and legal entities.
  • Describe appointments and how they relate to producers.
  • Relate an insurer’s legal entities to authorized insurance lines.

Get to Know the Producers of Insurancetown

An insurance producer is someone who sells insurance products to clients on behalf of an insurance company. The insurance data model in Financial Services Cloud provides flexibility to model the following kinds of producers.

  • Direct—Insurance company employee
  • Captive—A contract agent of the insurance company selling only a single insurer’s policies
  • Independent—A contract agent of the insurance company selling multiple insurers’ policies

Multi-Producer Collaboration

The insurance data model allows for multiple producers to collaborate on a single policy, in addition to the conventional one-policy-one-producer framework. Let’s see how this plays out with a couple of examples.

One-to-One

Cumulus Insurance sells policies through two agents: one captive agent and one independent. The following example illustrates how the policy-to-producer relationship can be modeled in both these agents.

In the following graphic, IP1423 is an independent producer modeled as contact Marcello Ghirlando and working for the MaxProtect agency. He has sold a life Insurance policy: LI-1235-567. 

CP1323 is a captive producer modeled as user Kumiko Ishikawa. She has sold a car insurance policy: CI-1235-568.

A picture showing the information contained in the Insurance Policy, Producer, Account, Contact, and User objects and how they relate to each other.

Many-to-Many

The insurance data model supports many-to-many producer-policy relationships through Producer Policy Assignment, which serves as a junction object between Insurance Policy and Producer. We’re going to keep our example simple here and consider only captive producers. But know that all producer types are supported for many-to-one producer-policy relationships.

A large commercial insurance policy from Cumulus typically requires a team of agents and service reps to work in tandem to manage the policy.

Notice in the following diagram how three producers, P001, P002, and P003 work on the same business insurance policy, BI-1235-567.

A picture showing the information contained in the Insurance Policy, Producer Policy Assignment, and Producer objects and how they relate to each other.

Note

Note

To allow for multiple producers to collaborate on a single policy, be sure first to enable the Producer Policy Assignment object. You’ll unlock this object when you enable Let Multiple Producers Work on the Same Policy under Insurance Settings in Setup.

Producer Licenses and Appointments

An insurance producer (interchangeably referred to as agent or insurance broker) is an individual licensed by a state's insurance department to sell insurance in that state. There are different categories of insurance, and a producer must be licensed in each category they wish to transact business. Karuna uses the Business License object to model the business licenses of Cumulus’s producers, including license details such as License Class and Line of Authority.

Appointments is insurance industry jargon for an agreement between the insurer and a producer authorizing the producer to represent the insurer in the sale of its insurance products. Karuna uses the Distributor Authorization object to model appointments. Licenses are issued and appointments are usually done for a line of authority such as Accident, Property, and Casualty. The Distributor Authorization object has a lookup to the Business License object to capture the license-appointment relationship.

Ridhima from the MaxProtect agency is authorized by Cumulus Insurance to sell policies in the Accident line of authority.

In the following example, Ridhima Kapoor works for the agency, MaxProtect, and she’s licensed for the Accident and Property lines of authority. Cumulus Insurance has, however, appointed Ridhima to sell policies only in the Accident line of authority.

A picture showing the information contained in the Account, Contact, Distributor Authorization, and Business License objects and how they relate to each other.

Karuna uses the Authorized Insurance Line object to model the insurance lines that the insurer’s legal entities are authorized to sell. Authorized Insurance Line has a lookup to the Legal Entity object, which captures the insurer’s legal entities or subsidiaries.

In the following illustration, Cumulus Life Insurance Company is a legal entity of Cumulus Insurance, and it’s authorized to sell the Life insurance line in the United States. Cumulus Life Insurance Company has in turn appointed the agency MaxProtect to sell policies under the life insurance line.

A picture showing the information contained in the Authorized Insurance Line, Legal Entity, and Distributor Authorization objects and how they relate to each other.

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