Question on Out of State Licensing

Meep

New Member
3
I need some input on the steps to get licensed for P&C in another state.

I am a P&C/L&H agent of just one year and just started work for a leasing company which plans to offer insurance coverage's for lessees (and eventually forced placement insurance). However, they do business in multiple states and I was informed they are getting a company license(?) so they can authorize me to sell insurance in other states by just filling out some forms; they are using a third party carrier to offer insurance.

Can somebody clarify the steps my employer is taking in getting me licensed to sell insurance out of state? I was under the assumption that licensing requires a test and mandatory coursework hours. As the only licensed agent in the office I am concerned that something is done incorrectly on their part and I am held liable.

Any input would be greatly appreciated.

Thanks.

Meep.
 
Agent vs agency licenses can vary a bit by state, but to get a non-resident license it usually just involves submitting an application and paying a fee. Check out National Insurance Producer Registry and it should have a bunch of info you'll find interesting.
 
Thank you for the link, it was definitely helpful. I just had an additional question I could not find the answer to on that site.

After the required forms and fees are filed, will I be able to sell insurance to the non-resident states on my own, or is it allowed only through the business entity that they setup? I just want to know if I am getting a perk from my company to sell insurance to different states on their expense, or if I receive no benefit from it and should request a wage increase since I was not originally hired to sell insurance.

Thanks again for any help.

Meep.
 
In most states a non-resident producer license will allow you to sell without an agency. The best thing to do is check on each state. I know that in Virginia, Colorado, New York, Maine, Texas, Pennsylvania, and a number of other states the producer license (what's likely being done for you) you're golden.

If you're getting paid hourly you probably shouldn't ask for a wage increase based on this. Who you're working for is taking on at their own expense something to make you more employable by them. Most opportunities in the insurance industry are commission only with no reimbursement for anything.

You can always ask for a raise, but if I hired someone and paid to get them licensed and they asked for a raise because I was making them more employable, the conversation probably wouldn't go quite the way they expected.
 
Thanks Josh for all your help.

My main concern was that the producer license for non resident states would not benefit me in any way, and I would have to continue keeping my insurance license up to date (incurring time and fees) when I was not hired for it originally.

But based on what you stated, I am getting a benefit from them and would have no intention on asking for a wage increase.

I know for a fact that they plan to charge a broker fee, would I be overstepping my boundaries if I request a percentage of that fee or commission on policies sold? I have an hourly wage but that is because I have other duties than just selling insurance. I just don't want to get paid the same as everyone else and be forced to do extra work selling insurance just because I have a insurance license (from a previous employer), regardless if they pay for non resident licensing.

Thank you again for all your help on this. Much appreciated.

Meep.
 
Thanks Josh for all your help.

My main concern was that the producer license for non resident states would not benefit me in any way, and I would have to continue keeping my insurance license up to date (incurring time and fees) when I was not hired for it originally.

But based on what you stated, I am getting a benefit from them and would have no intention on asking for a wage increase.

I know for a fact that they plan to charge a broker fee, would I be overstepping my boundaries if I request a percentage of that fee or commission on policies sold? I have an hourly wage but that is because I have other duties than just selling insurance. I just don't want to get paid the same as everyone else and be forced to do extra work selling insurance just because I have a insurance license (from a previous employer), regardless if they pay for non resident licensing.

Thank you again for all your help on this. Much appreciated.

Meep.

In my opinion, if they're paying you an hourly whew to work for them, whether you're selling insurance, answering the phones, or anything else, you're still getting what was agreed to. If they change your job duties, but continue to pay you, it's unclear to me why you would think they owe you a higher wage.

If you're generating business for them from your own efforts then it may make sense for them to add a commission, odds are it doesn't. Hourly jobs are usually just that, hourly jobs.
 
Meep, one thing I would add.... are they going to train you with learning all the differences in each state, or are you expected to learn that on your own?

There is a big learning there. Some states are tougher to learn than others because of crazy laws. I would suggest learning one state at a time (esp. if it's a no-fault state). Trying to learn them all at once may cause you to want to put your eye out with a fork!
 
Back
Top