Out of State License Requirements

[efletcher]

What are the out of state license requirements when you have a risk that is headquartered in your state (CA in this instance) and has various out of state locations. One of our Companies is telling us that we need an out of state license for each and every state in which our CA risk has a location.

There is no question that this is a CA risk, the out of state locations are just small sales offices. I have never been asked for an out of state license when simply adding a location to an existing CA policy before but the company is insisting that this is DOI regulation...

I would like to hear from others. Have the regulations changed and I am not aware?

[wariline]

I think you do need a non-resident license if the policy is written by carrier you're directly appointed. If you're writing the policies through a wholesale broker, that broker needs to be licensed in those states - not too sure about whether you still need to have or not.

[gregcw]

My understanding on this is that, as long as the policy is constructed in the state that you are licensed in and the insurance company you are appointed by is licensed in the state that the property is located in that you do not need to be licensed in the state the property is located in. The key is that you are NOT transacting any business in the other state.

[Lady Broker1]

As a wholesaler, we require you to be licensed in any state in which you place Property business. SLAtax on Property is paid to each state. For Liability, the home
State gets all the Tax and then we don’t care if you”re licensed there.

[gregcw]

I agree that this would generally apply to the residual market because I would not have a direct appointment with any of my General agents or any of the secondary market companies. However with companies I hold an appointment with, I have been able to add locations in states other than my own as long as the company is licensed in that state and the policy is constructed in my state.