According to the Securities and Insurance Licensing Association, all states require business entities – what most in the industry call “agencies” – to designate a responsible licensed producer or responsible person to act as the authority of an agency.
Having a DRLP may not seem like an intuitive rule, but consider: Although agencies are regulated much like an individual person, without someone who has actual skin in the game, so to speak, businesses have a tendency to act with higher regard for the bottom line than for the basic interests of consumers. ARTICLE