Why is a P&C License required?
- Licensing is purely required to share in commission revenue in a way that complies with state laws
- The Distributor Services Agreement(DSA)provides for such continued revenue sharing provided the dealership remains properly licensed and otherwise in compliance with the DSA.
- Only a licensed insurance producer can receive compensation for a lead or referral to a potential insurance customer if that compensation is conditioned on the customer purchasing insurance.
What is the licensing structure?
The dealership as a licensed business entity insurance producer must have at all times at least one individual who is licensed and designated as the individual responsible (DRLP) for the license and compliance with applicable state laws. You may wish to consider having more than one such DRLP, as the dealership’s business entity license will automatically expire if there is no DRLP, such as if a lone individual DRLP were to retire or otherwise leave the dealership. A DRLP need not interact with customers or otherwise be present in the dealership if the dealership complies with the DSA.
What is the licensing process?
Please refer to our P&C Licensing Requirements page for information detailing the licensing process.
What policies does Salty pay on?
When do payments start?
Payments begin upon completion of the licensing process.
When does Salty accrue payments?
Salty accrues payments after the licensing process is complete but when a dealer hasn’t yet submitted tax (W9) or other information.
Can Carriers solicit business from consumers?
No. All carrier activities must originate through Salty.
What is the difference between Salty and a comparative rater?
Salty uses artificial intelligence to analyze your customer’s information, sort through multiple carriers, and present them with the right bindable quote in real-time. Comparative raters simply shop and give multiple choices of non-bindable rates, that then change (generally upward) when they do a full quote and pull the MVR/CLUE.
What is the agreement term?
1 year with annual automatic renewal thereafter unless canceled.
What is the business process?
- Use Salty’s technology platform to generate insurance leads for Salty and otherwise perform under the DSA, including obtaining consent from prospective customers/leads about whom to send lead information to Salty, in the form required by Salty, and advertising, promoting and referring customers to Salty.
- The dealership only needs to generate leads for Salty and advertise, promote and refer customers to Salty, as outlined in the DSA. Salty takes care of explaining insurance to customers and quoting, binding, and otherwise performing insurance-related activities as an agent for the insurance carriers Salty represents. The DSA further provides you and your personnel may not represent yourselves as employees or agents of Salty or the insurance carriers Salty represents.
Who owns the book of business?
- Salty owns the book of business.
- Dealer customers remain their customers and will stay their customers regardless of whether they purchase insurance through Salty. Salty expressly agrees in the DSA that you own the use and control of any rights in your customers’ insurance renewals for insurance purchased under the DSA and that Salty may not solicit or take any adverse action concerning such renewals, as long as you continue to comply with the DSA.
- Customers are free to choose their insurance providers, including remaining with their current carrier/agent. We hope to have the opportunity to discuss Salty with your customers who consent to have us contact them. (Note, your customers are not guaranteed insurance through Salty – Salty has the discretion to accept, decline, reject, or submit customer applications to carriers according to the DSA.)
- CDK/Salty is compliant with all state and federal laws regarding data sharing and compliance. The only customer information released is the minimum necessary to accurately quote and underwrite the policy with our appointed carriers. We do not sell, share or distribute customers’ information with any third parties.
What is the Michigan Legal Opinion?
- Salty’s program is compliant with current regulations in all 50 states (plus DC), and we regularly review for updates and to maintain compliance.
- To build Salty’s program, platform, and process, we engaged specialist legal counsel to review regulations in all 50 states.
- The legal opinion offered by C&C is based on a different structure of entities, engaged in different activities, with a different legal basis, then Salty’s program.
- Salty is not affiliated with the carrier. The dealer is not affiliated with Salty. The dealer is not acting as an agent of Salty or the carrier. The dealer may not discuss (and explicitly disavows discussing) the terms of any specific policy with any specific consumer.
- It is furthermore unsurprising that the cited opinion is irrelevant, as it is from 2001, when insurance, technology, and auto markets contrasted starkly to today. For example, the state-of-the-art phone of the time was a Nokia 3310, which is now a handy paperweight.