Non-Resident License

Full Throttle

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Midwest
My understanding with a securities license is you can not discuss securities related business in that state without being licensed. That includes new prospects who contact you. With insurance, does it work the same way?

If someone contacts my office for a quote, can I legally quote it if not licensed yet? Then get licensed before an application is submitted?
 
My understanding with a securities license is you can not discuss securities related business in that state without being licensed. That includes new prospects who contact you. With insurance, does it work the same way?

If someone contacts my office for a quote, can I legally quote it if not licensed yet? Then get licensed before an application is submitted?

Full Throttle I do not think states have licensing except for insurance products and for registered investment advisors who are operating under state law and not under the SEC. I have been securities licensed in both IN and IL and there's was no security licensing except for insurance and the NADA now FINRA requirements.
 
I actually now hold 7 total non-residence licenses (ny,ga,pa,ca,il,oh) and previously when I worked for liberty mutual back in the day I held closer to 35 non-residence p&c licenses.

I can attest if you bind in a state your not licensed in (I did for IA) you and your appointment company can get reprimanded by the department of insurance in your residence state. The notice I got from AZ via IA complaint resulted in the policy being canceled and the AZDOI slapping my hand with a warning. My appointed company was PO'ed.

Apparently, the complaint issued by IA stated, you can not only not bind but not have a sales discussion with residents of states you are not licensed in. Since this issue I shy away from having even high level insurance conversations with customers in states I don't carry a license - just not worth the trouble in my opinion. Is that overkill? Probably but wait until you get a notice from your home state and then you learn to be more cautious.
 
back in the day I held closer to 35 non-residence p&c licenses.

How in the world did you keep up with 35 states?

I feel like my plate is full keeping up with only 6 states. Especially since 2 of the 6 are planning major changes/overhauls in the coming months. I have noticed that the learning curve is less in some states and more in others. But if I sold in 35 states, I wouldn't know whether to wind my ass or scratch my watch!
 
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