Life Insurance Agent: Tennessee To California - What's Allowed?

To sell insurance in California, a Tennessee life insurance agent would need to obtain a non-resident insurance license. This typically involves meeting the eligibility requirements set by the state, which may include submitting an application, paying the necessary fees, and providing any required documentation, such as fingerprints or a background check. Some states require individuals to pass an additional state insurance license exam, while others only require an application and fee. It is important to contact the insurance licensing department in California to understand their specific requirements and fees.

Tennessee licensing requirements

The requirements to obtain a Tennessee insurance license are as follows:

Step 1: Decide Which Insurance Licenses You Need

The type of insurance policies you plan to sell will dictate the type of license you need. For example, to sell auto, home, or business insurance, you need a Property & Casualty (P&C) license.

• Travel, Accident & Baggage
• Title Practice Attorney

Most insurance agents obtain a P&C or a Life and Health insurance license, or both to offer clients a wider range of products.

Step 2: Ensure You Meet All Eligibility Requirements

To qualify for a Tennessee insurance license, you must:

• Be at least 18 years old
• Reside in Tennessee
• Be competent, financially responsible, and have a good business reputation

Step 3: Complete a Pre-Licensing Education Course

Although not mandatory, completing a pre-licensing education course is highly recommended as it can significantly increase your chances of passing the licensing exam. These courses offer features such as live tutoring, study calendars, and practice exams to enhance your understanding of the material.

Step 4: Schedule Your Tennessee Insurance License Exam(s)

You can schedule your insurance exam by creating an account and making an online reservation on the Pearson VUE website at least 24 hours in advance. The exam fee is $49 or $59, depending on your preferred format.

Step 5: Request a Fingerprint and Background Check

Submit your fingerprints to the Tennessee Department of Commerce and Insurance through IdentoGO for a background check. This costs $37.15 and will confirm that you meet the state's insurance agent regulations.

Step 6: Pass Your Tennessee Insurance License Exam(s)

All insurance exams in Tennessee are multiple-choice and administered by Pearson VUE. The Life exam, for example, consists of 68 scored questions and 9 pretest questions across two sections. You need a scaled score of at least 70 to pass.

Step 7: Submit Your Insurance License Application

Submit your application online through the National Insurance Producer Registry (NIPR) for a fee of $50 plus a small transaction charge. You must also submit the Fingerprint Policy and Acknowledgement Form to the Agent Licensing Section via email or fax.

Once you have submitted your application, the Tennessee Department of Commerce and Insurance will review it and your background check within 15 days.

California licensing requirements

The requirements for obtaining a California insurance license vary depending on whether you are a resident or non-resident applicant.

Resident Applicants

To obtain a resident insurance agency license in California, you must complete the following steps:

• Complete an insurance prelicensing course. The number of hours required depends on the type of insurance license you are seeking. For example, the Life/Accident & Health license requires 40 hours of prelicensing education.
• Pass the California licensing exam.
• Get fingerprinted.
• Apply for a California insurance license.
• Complete required insurance continuing education (CE) credits.

Non-Resident Applicants

Non-resident insurance agencies and agents can apply for licenses without taking California's state licensure exams, as the state has reciprocity agreements with other states. However, non-resident agents will only have the authority granted by their home state.

General Requirements

Regardless of residency, all applicants must meet certain general requirements to qualify for a California insurance license, including:

• Being at least 18 years old.
• Residing in California (for resident applicants).
• Being competent, financially responsible, and having a good business reputation.

Fees

The fees for a California insurance agency license vary depending on the line of insurance. The filing fee for a Life license, Accident and Health license, or both at the same time is $188.

License Duration and Renewal

Insurance licenses in California are valid for two years. To renew your license, you must complete 24 hours of continuing education and pay a $50 license renewal fee. If you fail to renew by the expiration date, you will be given a one-year grace period, but your business will be barred from making any transactions during this time, and you will need to pay a 50% reinstatement fee.

Disqualifying Factors

The California Department of Insurance (CDI) conducts detailed background checks on all license applications, so it is important to answer all screenings completely and truthfully. Failure to disclose any disciplinary action, criminal convictions, or pending criminal charges can be considered fraud or misrepresentation and may result in the denial of your application.

Additional Licenses and Permits

In addition to insurance licenses, you may need to obtain business licenses and permits to operate your insurance agency in California. The requirements vary depending on the county or city, but at a minimum, you will need a business or general license, which includes a business tax certificate.

Non-resident licenses

To become a non-resident insurance agent in California, you must submit your initial license application electronically through the National Insurance Producer Registry (NIPR). The application fee is $170 per line of authority and $29 per business entity endorsement. Checks should be made payable to the California Department of Insurance.

California does not accept the Uniform Non-Resident Licensing Application for individuals. Instead, you must submit the Non-Resident Individual Application for Insurance License.

You must be at least 18 years old to apply for a non-resident license in California. If your home state has a continuing education (CE) requirement, then the CE requirement is waived for non-resident licensees. However, any licensee that markets long-term care contracts is required to meet the specific training requirements for marketing such contracts. Additionally, any non-resident life agent who sells annuities in California must complete an initial 8-hour training course, as well as a 4-hour annuity training course every two years thereafter.

Non-resident applicants who have been previously licensed as a resident insurance producer in California and previously fingerprinted are exempt from the fingerprint requirements. For all other non-resident applicants, fingerprint impressions must be submitted to the California Department of Justice and the Federal Bureau of Investigation, and the results must be received by the California Department of Insurance before a license can be issued.

It is important to note that the authority granted to non-resident licensees will never exceed the authority granted in their home state.

Continuing education requirements

To sell insurance in California, insurance agents must complete California's continuing education (CE) requirements. These requirements include prelicensing education and a state licensing exam. The prelicensing education hours required vary depending on the type of insurance being sold:

• Ethics and California Insurance Code: 12 Hours
• Accident and Health: 20 Hours
• Life / Accident & Health: 40 Hours
• Property and Casualty: 40 Hours
• Personal Lines: 20 Hours
• Adjuster: No Prelicensing Education Requirement

Note that applicants with certain designations or certifications are exempt from prelicensing education requirements for the indicated line of authority. However, they must still complete the 12-hour Ethics and California Insurance Code course.

After completing the prelicensing course, individuals must pass a state licensing exam and get fingerprinted before applying for a California insurance license.

Once licensed, insurance producers must adhere to their home state's CE requirements. In California, this includes completing 24 hours of CE every 2 years, including 3 hours of ethics training.

As for Tennessee, insurance agents must also complete prelicensing education and a state licensing exam to obtain their license. While prelicensing education is not required in Tennessee, completing an exam prep course can increase the chances of passing the licensing exam.

Tennessee insurance agents must also complete continuing education requirements to maintain their license. This includes 24 credit hours of approved continuing education every 2 years, with at least 3 credit hours in ethics training.

Therefore, a Tennessee life insurance agent who wants to sell insurance in California would need to complete California's prelicensing education and licensing exam, in addition to adhering to California's CE requirements.

Application process

To sell insurance in California, you must obtain a California insurance license. Here is a step-by-step guide on how to do that:

Step 1: Complete a California Insurance Pre-license Course

Before taking the California life insurance licensing exam, it is important to acquire the knowledge necessary to pass the exam on your first attempt. California requires 20 hours of life insurance pre-licensing education, in addition to 12 hours of ethics and California Insurance Code, for a total of 32 hours of pre-licensing education. A pre-license education course provides specific industry knowledge that will be tested during the exam and gives you a solid understanding of your duties as a life insurance agent.

Step 2: Get a Fingerprint-Based Background Check

After completing the California life insurance pre-licensing education requirements, you must obtain a fingerprint-based background check before taking the licensing exam. The CDI's contracted fingerprint vendor is Accurate Biometrics, which charges a $59 processing fee, a $17 FBI processing fee, a $32 Department of Justice processing fee, and a $10 CDI contractor rolling fee. Alternatively, you can take your fingerprints at a PSI test centre for a total processing fee of $68.95.

Step 3: Take the California Life Insurance Licensing Exam

After completing the fingerprinting requirement, you can take the California life insurance exam. California uses PSI Exams as its official testing service. The exam contains 75 scored questions covering general and state-specific sections, and you will have 105 minutes to complete it. The exam fee is $88, which must be paid at the time of reservation.

Step 4: Complete a California Life Insurance License Application

Once you have passed the life insurance exam and completed the background check, you can apply for your California life insurance license. The application fee is $188, plus a $5.60 transaction fee if applying via the NIPR. You can submit your application online or by mail to the California Department of Insurance. The CDI will issue a life insurance license to individuals who are at least 18 years old and have passed the licensing exam. You should submit your completed license application within 12 months of passing the exam.

Step 5: Watch for Your Application Results

After submitting your application, the CDI will review it and your background check. This process usually takes two to three weeks from the date you send your application. You can print your license from the Sircon or NIPR websites.

Additional Information

It is important to note that the requirements and process for obtaining a life insurance license may be different for non-resident applicants. Additionally, to maintain your license, you will need to renew it and complete continuing education credits every two years.

Frequently asked questions