Managing your Risk Purchasing Group’s annual renewals can be a daunting task, but with a little bit of preparation and organization, you will likely find the process to be a lot less chaotic. Herein you will find a few pointers to help you tackle risk purchasing group registration renewals like a pro.
A Risk Purchasing Group (RPG) must be registered with the Department of Insurance (or analogous regulatory agency) in all states in which it is provides coverage for its members. As of the date of this article, thirty-one (31) states require some form of annual registration renewal or continuation filing in order to maintain the RPG’s active status in that respective state. Bearing in mind that failure to submit a renewal in a timely fashion will result in the cancellation of the RPG’s registration which effectively terminates the RPG’s authority to provide insurance coverage for its members in that state, here are a few pointers to help guide you through the RPG renewal process.
Tip 1: Know the states in which your RPG will need to file an RPG registration renewal
If your RPG operates nationwide, you will need to submit an annual registration renewal in all states with annual renewal requirements. RPGs with members operating in only a handful of states will have a smaller RPG registration footprint which reduces the annual filing footprint accordingly. Identifying the specific state RPG registrations which will need to be addressed is a critical step as you embark on the RPG registration renewal process.
Tip 2: Plan your preparation schedule in accordance with renewal due dates
While states’ renewal filing due dates vary, it is worth noting that a majority of the renewal dates fall in the first quarter of each year, with March 1st being the most common due date. With that said, it is advisable to be sure that you’ve set aside resources to gather and prepare required renewal forms and information necessary to accurately and completely populate and timely submit each renewal. Early January is an ideal time in which to allocate adequate time/personnel to this process.
Tip 3: Be familiar with what information is required to be reported for each state
The type of information required to be reported varies widely by state. A few states require very minimal information whereas others require very specific, detailed information such as information specific to each and every policy placed by the RPG in that state during the calendar year being reported. A majority of states, however, lie somewhere in between.
Being organized is the key point here, particularly when the information required must be requested from another individual or department within your organization. Establishing what information is required in each state, well in advance of the filing due date, will help keep you in the good graces of your colleagues and ensure timely filing.
Tip 4: Anticipate each state’s filing method to ensure timely filing
You’ve likely noticed a theme: RPG renewal filings vary quite a bit by state. This theme continues when considering the method by which annual renewals are submitted. Regular mail, online portals (including OPTIns and state specific websites), courier service, and email are the four usual submission methods. While there appears to be a trend towards every state adopting some form of electronic submission option, there remain holdouts at this time and one must be particularly mindful to allow enough time for non-electronic submissions to be delivered in advance of the filing due date.
Tip 5: Be mindful of renewal fees
There are a number of states which impose no annual RPG registration renewal fee. For those which do charge a renewal fee, that fee ranges from $50 to $450. While not necessarily astronomical, the fees do add up quickly, especially for RPGs with a large state footprint and/or an organization utilizing multiple RPGs. It is a best practice therefore to ensure that upcoming renewal fees are properly budgeted prior to the start of each filing year.
Bonus Tip: Identity who will be required to execute the renewal forms
Many of the renewal forms require the signature(s) of Officers and/or authorized representatives of the RPG. What’s more, a good number further require that these signatures be notarized. In this era of remote work, coordinating the execution and notarization of prepared forms in a timely manner (eg. in advance of due dates) is crucial!
Need more information or have questions?
We hope you find these tips helpful as you navigate the RPG renewal space. If you have any questions with regard to the preparation and filing of Risk Purchasing Group registration renewals, or more generally with regard to forming and/or keeping Risk Purchasing Groups in compliance, please feel free to contact us.