CAARP Introduction, Part I: What is CAARP?


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Producer Certification

Application for Certification
Every agent who submits applications to the California Automobile Assigned Risk Plan (CAARP) and/or the California Low Cost Automobile Insurance Program (LCA) must first become a certified producer.

To become certified the licensed agent must complete a certification application and send to CAARP along with a copy of their fire & casualty or personal lines license. The Producer Certification Application is available on CAARP's website.

Certification Requirements

Producers are required to complete CAARP's Introductory Seminar Course within 120 days from their certification date.
To maintain their certification, each broker-agent must complete the producer seminar requirement, either on-line or through an instructor-led class, at least once every four years after certification.
Producers must send their renewal licenses to CAARP to keep their certification active. Producers who do not send their renewal licenses will eventually lose their certification status with CAARP and will be unable to submit applications to CAARP or the LCA Program.

Producers must also keep CAARP informed of:

Individual or agency name change
Address/telephone/fax number changes
New approved DBA name
New Tax ID number
Change in producer association

Producer Association
A producer is considered associated with another producer/agency if they
share an office (the same business address, including telephone and/or fax numbers), supplies, operational expenses or commissions with another certified producer or certified agency.

This includes any producer who reports to (in a management sense) or is controlled by another producer, including those producers who are described as "endorsed agents" by the Licensing Bureau of the California Department of Insurance. A producer can be considered "associated" by CAARP even if they are not listed as an endorsed agent by the Department of Insurance, if the Plan can reasonably demonstrate that a producer meets the definitions of an associated producer listed above.

Agent's Relationship to CAARP
Certification does not create a relationship between CAARP, the LCA Program, or any assigned company and the certified producer. All actions of a producer related to CAARP or LCA business are conducted on behalf of the applicant/insured and not on behalf of CAARP or the LCA Program.

In other words, an agent is not an agent of CAARP/LCA or of any assigned company.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
The authors, LunchTimeCE, Inc. and AIPSO, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.