Licensing Question

[GRCinCA]

As my Northern CA agency grows I am constantly running into state licensing issues. The most common issue I run into is the second home/vacation home in AZ or Nevada or Oregon. Because I do not have a license in those states I have to refer the business.

I looked into non-resident licensing for OR and NV and AZ and it would cost me arond $350 to get a producer license in those states. I guess I am wondering if I can save the money.

Is it possible to find someone licensed in all states who is willing to bring me on as a "producer"?

[Big Dog]

In order to be a "producer" in those states, you'll need to be licensed. Getting a non-resident license isn't that tough. It sounds like your main issue is the costs. Keep in mind that this is an expense/tax deduction for your business.

[TheInsKid]

If you expect to split commissions or be paid in some manner, then you need to be licensed as a non resident in those states otherwise you and the entity and/or person who you are connected with run the risk of getting in trouble in those non resident states. If is not worth the risk to potentially lose your license in your home state/other states and/or fines as well for not being correctly licensed. It is not only you who runs the risk, it is the "other guy" who works with you that takes the chance as well. States love to find un licensed people and fine them and their sponsors as well.

[Rlevine]

Licensing is a major concern for all brokers. I have seen where carriers will license you in multiple states. Unfortunately, I am not sure if there is a cost involved. Ask your carriers for assistance.

[Matt80303]

The best answer is for you to get the nonresident licenses. They generally are not too difficult to obtain and they give you greater availability to write accounts whenever you might need it.

However, the rules do vary by state and there is some flexibility depending on what states we are talking about. For example, if you know an Oregon licensee and the two of you can reach an agreement, you may refer an account to the Oregon licensee and receive a commission. Basically, you would provide the referral and perform only administrative tasks, such as forwarding an application (just be sure you are not selling, soliciting, or negotiating) and, according to the Oregon Division of Insurance producer FAQ (http://www.cbs.state.or.us/external/ins ... _faqs.html), you can receive commission. Also, if you are able to write the entire account on one policy, some states have exceptions if only a small amount of the TIV is located in that state.

[wlunday]

My recommendation would be to find a quality agency in the states you don't want to approach for a non-res license. Refer the business.

It may not apply in these cases, but many states still have a "controlled business" law on the books, aimed at keeping out-of-state agents from writing only a few accounts. (Usually family).

I have the same problem wit CA. My brother lives in So Cal, and I'd love to write his insurance. New home, nice cars, healthy... you get the idea.... controlled business.

Good Luck.

Swymmer

[mhutch69]

Greg Culley,

I would gladly assist with any Arizona risks. My agencies have been in business since 1960 in Phoenix. We are licensed to write in AZ. & NV. NV. just eliminated, via court case, their protectionist "countersignature" law. Finally, it is NOT required to pay the resident agent 5% commission on NV. business.

Anyway, I would think a flat % split would be easiest. I am unsure if we are a producer for the markets you would find necessary, but I think we are. Chubb, Travelers, Firemans Fund, Mercury, Progressive, CNA, etc.

Just let my office manager know.

Yvonne Arnold
Interstate Insurance Agency
332 East Camelback Road
Phoenix, Arizona 85012-1614
602-264-2131
Fax 602-264-6771
1-800-840-3180 nationwide toll free

thanks,

Mark R. Hutchings