Frequently Asked Questions – Insurance Licensing

Let’s face it…Insurance licensing can be complicated. For most people who have licensing responsibilities, it isn’t a full time job and can provide real challenges. At Supportive Insurance Services, we receive questions every day from agents and agencies who need help with insurance licensing. We thought it would be helpful to focus on some of our most frequently asked questions.

frequently asked questions insurance licensing

I need a non-resident license. Do I have to take a test again? No. Many years ago, this was the case, but now all states are reciprocal. If you hold a license in your resident state, you passed a test when you obtained that license, no additional testing is required when you apply for a non-resident insurance license for the same lines of authority.  (Please note this does not apply to adjuster licensing in all states.)

I recently moved. I’m licensed in multiple states. When I change my address in my home state, does that change all the non-resident states also? Unfortunately, it doesn’t. You will need to submit an address change request to each state where you hold a non-resident license. These can be submitted electronically via www.nipr.com.

We recently filed for a non-resident business entity license. Now they say we need to provide proof of a Certificate of Authority. What is that? Also known as a COA or a foreign qualification, a Certificate of Authority is the process of registering a corporation or LLC with the Secretary of State’s office in a non-resident state. As a part of the business entity license application process, some states require proof of the Certificate of Authority before the state insurance department will issue the agency license.

Do I really need non-resident licenses? If you will be “selling” (exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company), “soliciting” (attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company) or “negotiating” (conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers) with resident in those states, you must be licensed.

Still have questions?  Call Supportive Insurance Services today and let us take care of your insurance licensing needs!

2018-06-13T17:22:49+00:00