Downline agents

ValeRosso

Guru
643
If I have downlines in different states, do I need to also be licensed in the same states the downlines are, as well as contracted with the same companies, to then be paid overrides?
 
Ugh, that's what I thought.

Does the state license apply as well? Like if I'm with Aetna in several states and a downline is with Aetna in a state I'm not licensed in…does that mean no overrides?
 
Ugh, that's what I thought.

Does the state license apply as well? Like if I'm with Aetna in several states and a downline is with Aetna in a state I'm not licensed in…does that mean no overrides?
It's state and carrier specific.
 
Ugh, that's what I thought.

Does the state license apply as well? Like if I'm with Aetna in several states and a downline is with Aetna in a state I'm not licensed in…does that mean no overrides?

Not only would it mean no override, many times carriers like UHC and Aetna require the upline to be licensed in the state in order for the downline to be appointed in that state.

If a downline has business/renewals in a state that you are not licensed in and contracts under you, they could terminate their state appointment and stop renewals.
 
It's state and carrier specific.
Bump on this but usually yes. You need to be licensed an appointed in the state. We have an agency in this situation that got really held up by all of their appointments in GA because the Principal couldn't get his non res license.

Your FMO should know all the rules on this and be able to guide you
 
Ugh, that's what I thought.

Does the state license apply as well? Like if I'm with Aetna in several states and a downline is with Aetna in a state I'm not licensed in…does that mean no overrides?

Aetna is one of the few, that doesnt require the upline licensed in that state. This is in regards to the medigap.

With most carriers you would need to be licensed in that state and ready to sell. There is some variation, such as if you are not licensed in the non res state the dowline may or may not get paid. In some situations, if you're not licensed, the agent gets paid, but the override gets put on hold, and released when you are licensed.

I think most every FMO will tell you you must be licensed, just for good measure. However this is not 100% true.
 
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