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Just in Time Processing: How it Affects You

Christy Gass
Licensing & Contracting

More and more carriers are starting to use a Just In Time procedure, but what does this mean and how does it affect you and your business?

What is "Just in Time"?

Just in time is when a carrier holds your appointment paperwork for a certain length of time until you submit new business unless you are in one of the states that requires pre-appointment with that carrier (varies per carrier). This means that the carriers will not process your paperwork or run a background check on you until they have proof that you have submitted new business. When the carrier receives the new business application, only then will they enter you into their systems, process your appointment paperwork, and order the background check, etc.

Why do carriers use Just In Time?

Many carriers are moving to a Just In Time procedure to save money. The carriers have to pay their employees to process the appointment, enter your data, and so much more. They have to pay a third party to run/facilitate your background check. They have to pay annually for each state where you need to be appointed. Therefore, the carriers who use Just In Time only want to pay for all of these things for agents who are serious and ready to do business with them instead of asking each agent to pay the fees.

How does it affect you?

If you don’t have any background issues then Just In Time should not affect you much. If you have background issues or have been declined by a carrier before, Just In Time may be a bit of a concern for you. Most carriers will not make an exception to their Just In Time procedures, so you will need to submit new business in order to get the appointment. However, if the carrier declines the appointment, unfortunately, the application will also be declined.

The Licensing Team will let you know when the carrier you request uses Just In Time procedures and if anything else needs to be done besides submitting your new business. We are also available to answer any of your questions.

Christy Gass | Licensing & Contracting Specialist   636.695.2819   cgass@FIRSTHEARTLAND.COM

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