Verification reports (a.k.a. background investigations) must be provided by a nationally recognized agency with experience performing those investigations. The agency must have the ability to perform international searches when necessary. Agency officers and directors cannot have any material affiliation with the company making application to a department of insurance other than stock ownership amounting to less than 1% of total stock outstanding, unless prior approval is given by the department of insurance to which application is being made.
The agency, when contacted by an insurer requesting an independent verification report, shall receive a completed copy of the individual’s NAIC Biographical Affidavit and Authority for Release of Information form. These forms shall be sworn to by the affiant, notarized and dated not more than one year prior to the date of submission to the department of insurance.
The heading of each independent verification report shall contain the name of the background investigation agency, date of report, name of “Applicant Company,” name of the individual for whom the report is prepared, and the social security number of the individual. The report shall disclose all discrepancies and/or inconsistencies noted as set forth in the Verification Report Guidelines. The verification report shall be submitted directly to the department of insurance from the background investigation agency.
Verification report guidelines for background investigation agencies may be requested by contacting NAIC staff at: firstname.lastname@example.org.
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