Health And Life Insurance: Tn-Va Reciprocity

If you are an insurance agent in Tennessee and are considering a move to Virginia, you may be wondering if your insurance license will be valid in your new state. The good news is that most states offer reciprocal licensing privileges, allowing adjusters with a license in their home state to obtain a license in another state without taking an exam or pre-licensing course. However, it's important to note that not all states reciprocate, and the requirements for license reciprocity vary. In this case, both Tennessee and Virginia are among the states that do not require licensing for insurance adjusters, and both are included in the list of states that qualify for a Designated Home State (DHS) license.

Tennessee and Virginia are among the states that don't require licensing for insurance adjusters

Tennessee and Virginia are among the 16 states that do not require a license to work as an insurance adjuster. This means that in these states, you can legally adjust insurance claims without a license. However, this license exemption only applies to your home state. Therefore, if you want to work as an adjuster in other states, you will need to obtain a license.

The majority of employers prefer licensed adjusters as they can deploy them to clients across the country. Furthermore, most adjusters seek out-of-state licenses to enable them to work throughout the entire country, which is how they can truly maximize their income potential.

To obtain a license in a state that doesn't require licensing, such as Tennessee and Virginia, you can apply for a Designated Home State (DHS) license. This license allows you to declare a licensing state as your home state, and you will need to go through that state's licensing process, testing, and compliance regulations. Once you have a DHS license, you can use it to obtain reciprocal license privileges, making you more employable and allowing you to adjust claims in other states.

The two most popular states for obtaining a DHS license are Florida and Texas. This is mainly because these states offer the option to take the pre-licensing course and state exam online, making it convenient for individuals to complete the licensing process remotely.

Virginia requires insurance agents to obtain a license

Step 1: Complete an Insurance Exam Prep Course

Although not mandatory, enrolling in an exam prep course is highly recommended due to the challenging nature of the licensing exams. Kaplan offers comprehensive exam prep courses that significantly enhance your chances of passing the Virginia licensing exam.

Step 2: Pass the Virginia Licensing Exam

After completing your exam prep course, you must pass the state licensing exam. The exam is administered by Prometric, and you can register and find more information on their website or by calling them.

Step 3: Apply for a Virginia Insurance License

Once you have successfully passed the state licensing exam, you can proceed to apply for your insurance license. Visit the NIPR website for application instructions, rules, requirements, and the application form.

Step 4: Get Fingerprinted

Resident applicants are required to schedule an appointment for fingerprinting as part of the application process. Fingerprints are collected electronically by Fieldprint and transmitted to the Virginia State Police and FBI for a background check. The cost of fingerprinting is $34.95, which includes the fees for both the state and FBI.

Step 5: Plan for Continuing Education Credits

Insurance producers must stay compliant with their home state's continuing education (CE) requirements. Enrolling in a CE library grants you access to a wide range of courses and helps you stay ahead in your field.

Additional Considerations:

• The renewal fee for a Virginia insurance license is $10 per line of authority.
• Individual license renewal dates are based on the licensee's birth month and birth year parity (odd/even).
• For license renewals, completion of any required continuing education must be done by the time of renewal.
• To withdraw or cancel a license, use Form 5001 and email it to [email protected].

Tennessee insurance agents must pass a state licensing exam

To become a licensed insurance agent in Tennessee, you must pass a state licensing exam. While prelicensing education is not a requirement in Tennessee, it is highly recommended that you complete a preparatory course before attempting the state licensing exam.

Prelicensing Courses

National Online Insurance School and ExamFX both offer prelicensing courses that cover insurance concepts, definitions, insurance laws, and agent regulations listed on the Tennessee Examination Content Outline. These courses are presented in a clear and concise format and include instructional videos, interactive illustrations, practice exams, and student support.

State Licensing Exam

The state licensing exam is administered by Pearson VUE. The exam fee is $59, and you can schedule your exam online or by phone. You are required to provide two current forms of identification at the testing center, one of which must be government-issued with a photo and signature (e.g., driver's license, passport). The other must contain a valid signature and not be expired (e.g., debit/credit card).

The exam is multiple-choice and takes place on a computer. The number of questions and the time limit depend on the line of authority you are testing for. For example, the Tennessee Life-Only Agent Examination and the Tennessee Accident and Health Agent Examination both consist of 77 total questions (68 scored and 9 pretest) and have a time limit of 1 hour and 45 minutes. The passing score for these exams is 70%.

Retakes

If you do not pass the exam on your first attempt, the Tennessee Department of Commerce and Insurance requires that you wait ten days before retaking it. After each subsequent attempt, you must wait thirty days before trying again.

Additional Requirements

In addition to passing the state licensing exam, there are a few other requirements to become a licensed insurance agent in Tennessee. These include submitting electronic fingerprints for a background check, completing an insurance license application, and adhering to continuing education requirements.

Virginia insurance agents must pass a licensing exam and submit an application

To become a licensed insurance agent in Virginia, you must pass a licensing exam and submit an application. Here is a detailed guide on the process:

Step 1: Pass the Relevant Licensing Examination

Before applying for an insurance license in Virginia, you must pass the relevant licensing exam. The exams are administered by Prometric and cover various types of insurance licenses, such as Property & Casualty, Life & Health, Credit, and Motor Vehicle Rental Contract. The exams are multiple-choice and cost $35 per attempt. You can choose to take the exams either in-person or remotely using Prometric's ProProctor application. It is recommended to register for the exam electronically through Prometric's website or by calling them at 1-866-891-6396.

Step 2: Submit Your Insurance License Application

After passing the exam, you can submit your insurance license application online through Sircon or the National Insurance Producer Registry (NIPR) for a fee. The application fee is $15, and there may be additional service and processing fees. Ensure you attach all the required documents to your application, as failing to do so can result in your application being canceled. The processing time for applications is typically between 15 and 30 days but can take up to 60 days for applicants with misdemeanors or felony convictions.

Step 3: Complete a Fingerprint and Background Check

As part of the application process, resident applicants must also complete a fingerprinting and background check procedure. This involves scheduling an appointment with Fieldprint, one of their 93 locations, and providing two forms of valid identification. The fingerprints are electronically transmitted to the Virginia State Police and the FBI for a background check. The cost of this process is $34.95.

Step 4: Application Review

Once you have submitted your application and completed the fingerprinting and background check, all that's left is to wait for the review process. The Virginia Bureau of Insurance will review your application and background check, and you will typically receive a response within 15 to 30 days. If there are any issues or concerns, the state may contact you for further clarification.

Additional Considerations:

It is important to note that Virginia has specific requirements for residents applying for a new insurance license, including fingerprinting and background checks. Additionally, if you are applying for a Title license, you must complete a 16-hour pre-licensing study course and pass the Title examination within one year of completing the course. Furthermore, maintaining your license in Virginia requires completing 16-24 credit hours of continuing education every two years, including a minimum of three hours of ethics courses.

Virginia insurance licenses must be renewed every two years

Individual Licenses

Individual licenses have a renewal date based on the birth month and odd/even year of birth. For example, if you were born in an odd-numbered year, your license will expire at the end of your birth month in odd-numbered years. If you were born in an even-numbered year, your license will expire at the end of your birth month in even-numbered years.

You will receive a renewal notice 90 days before your license expiration date. The renewal fee is $10 per line of authority. If you fail to renew your license before the expiration date, you can still renew it within one year of the expiration date. However, you will be charged a late renewal fee of $30.

Agency Licenses

Agency licenses must be renewed by May 1 every odd year. If an agency fails to renew its license by this date, it must submit an application for a new license. There are no reinstatements for agencies.

General Requirements for Renewal

To renew your Virginia insurance license, you must submit your application electronically through Sircon or NIPR. You must be at least 18 years old and use a Virginia address for your mailing and residence address. You cannot use a PO Box for your resident address.

If you are renewing your license within 90 days of inactivating your previous resident license, you will not be required to retake the licensing exam or obtain a new Criminal History Record Report (CHRR) for licenses held in your previous home state. Your Virginia nonresident license will remain active during this 90-day period.

Frequently asked questions