Business Entity A business entity is required to hold a license authority for all lines and classes held by individuals it is affiliated with. If you represent a business entity (firm) in Alaska, you are required to hold an individual license.You may be affiliated with more than one business entity. An entity transacting business from multiple locations, but under the same FEIN, is only required to license one location. Compliance Officer A business entity is required to have at least one designated responsible licensed person (compliance officer). Only one compliance officer may be named per license class, and the compliance officer must hold the same lines of authority as the business entity for that class. If the compliance officer's license expires or is cancelled, the authority of the business entity and all individuals transacting business on its behalf are no longer valid until a new compliance officer is named or the inactive compliance officer license becomes active again. Employment Contracts An employment contract is required for an individual who is affiliated with, or represents, a business entity unless the individual has an insurer appointment in his or her own name. A firm is required to determine the credentials of individuals it enters into an employment contract with and to ensure individuals are licensed to engage in Alaska insurance transactions. Employment contracts must be in writing and must specify the lines and classes of authority for the individual and firm. Both the individual and the firm must retain a copy of the contract and reply in writing to an inquiry of the director regarding any business transacted by the individual and the firm within three working days. See AS 21.27.215.