Getting Your Non-Resident Life Insurance License: A Guide

If you're an insurance agent or customer service representative in the insurance industry, you need to be licensed to sell or discuss insurance in the state where you live. But what if you sell insurance in another state, or in multiple states? This is a common scenario for people who live near a state border or work for a large insurance agency that sells insurance nationally or regionally. To sell insurance in a state where you are not a resident, you will need to obtain a non-resident insurance license. The process to obtain a non-resident insurance license varies from state to state, but typically, you will need to meet the eligibility requirements set by the state in which you want to obtain a non-resident license. This may include submitting an application to the state's insurance regulatory authority, paying the necessary fees, and providing any required documentation, such as fingerprints or a background check.

Get licensed in your resident state

To get licensed in your resident state, you must first take and pass a state-approved pre-licensing course (if this is required by your state). You can then formally apply for your resident insurance license, get fingerprinted (if this is required by your department of insurance), and pay all the necessary fees.

To apply for a new resident license, you will need to provide the following:

• License Number or National Producer Number (if previously licensed)
• Social Security Number (first-time applicants only) or FEIN
• Date of birth (individuals)
• Applicant, Licensee, License, and Residency type

You can pay electronically with Visa, Mastercard, AMEX, or electronic check. There is also a $5.60 transaction fee and state license fees may apply.

It is recommended that you contact your state's Department of Insurance to find out how to start this process. Note that insurance licensing exams are often administered by a third-party company. For example, in Texas, the testing company is Pearson VUE, and in Arizona, it's Prometric.

Check state-specific requirements

The requirements for a non-resident life insurance license vary from state to state. It is important to check the specific requirements for the state in which you are interested in obtaining a license. Here are some general guidelines and examples of state-specific requirements:

Eligibility Requirements

To obtain a non-resident life insurance license, you must meet the eligibility criteria set by the state. This may include submitting an application to the state's insurance regulatory authority, paying the necessary fees, and providing any required documentation, such as fingerprints or a background check.

State-Specific Requirements

• Texas: Texas requires an active license in good standing in your resident/home state with the same or greater authority to apply for a Texas non-resident license. The application fee is $50, and you must provide information such as a Texas DRLP and proof of financial responsibility.
• Illinois: To apply for a non-resident license in Illinois, you need to visit the National Insurance Producer Registry (NIPR) website and follow the application process. You will need to provide your home state license number, personal and business data, employment history, and answer background questions. Illinois also requires a bond in favor of the people of the state for insurance producers who do not have an agent contract.
• Florida: Florida has more stringent requirements, including fingerprints and a background check, before issuing a non-resident license.
• California: California also typically requires fingerprints for issuing a non-resident license in many states.
• Arizona: Arizona uses Prometric as the testing company for the state insurance license exam.

It is recommended to visit the Department of Insurance website for the specific state or NIPR.com to find detailed information about the requirements and fees for obtaining a non-resident life insurance license.

Apply for a non-resident license

If you are an insurance agent or customer service representative in the insurance industry, you need to be licensed to sell or discuss insurance in the state where you live. This type of license is called a resident license. If you want to sell or discuss insurance in another state, or in multiple states, you will need a non-resident license. This is a common scenario for people who live near a state border or work for a large insurance agency that sells insurance nationally or regionally.

The process to obtain a non-resident insurance license varies from state to state. Typically, you will need to meet the eligibility requirements set by the state in which you want to obtain a non-resident license. This may include submitting an application to the state's insurance regulatory authority, paying the necessary fees, and providing any required documentation, such as fingerprints or a background check.

• Get licensed in your resident state (if you haven't already): Take an approved insurance pre-licensing course (if required by your state) and pass the state insurance license exam where you live. After that, you can formally apply for your resident insurance license, get fingerprinted (if required by your department of insurance), and pay all required fees. Contact your state's Department of Insurance to find out how to start this process. Note that insurance licensing exams are often administered by a third-party company. For example, in Texas, the testing company is Pearson VUE, and in Arizona, it's Prometric. Even if it's not required, taking an approved insurance pre-licensing course is recommended to help prepare you for the state insurance license exam.
• Get a non-resident license in all states where you sell/discuss insurance: If you plan to sell or discuss insurance outside your home state, you will need to get a non-resident insurance license. Some states require you to pass an additional state insurance license exam, while others only require that you apply and pay a fee. Contact the insurance licensing department in the state where you plan to work to find out their specific requirements.

Things can get more complicated if you sell insurance in multiple states. For example, if you sell insurance to customers in 20 different states through your employer, you will be required to maintain active non-resident licenses in all these states, in addition to your resident insurance license. The good news is that large agencies usually have a dedicated person or department that handles licensing for their agents.

Additionally, most states have "reciprocal agreements," meaning that they will issue a non-resident license with few or no additional requirements beyond the license application fee, as long as you have an equivalent license in your resident state. However, some states have more stringent requirements, such as Florida and California, which require fingerprints and a background check for a non-resident license.

• Complete any required pre-licensing courses: Some states require you to complete an approved insurance pre-licensing course prior to taking the state licensing exam or obtaining a non-resident insurance license, while others simply encourage it.
• Submit your non-resident license application: Visit the website of the Department of Insurance for the state in which you want to obtain a non-resident license, or use the National Insurance Producer Registry (NIPR). Follow the instructions on the website to submit your application, pay the required fees, and provide any necessary documentation.
• Maintain your non-resident license: To maintain your non-resident insurance license, you will need to meet periodic requirements, such as completing continuing education courses, renewing your license on time, adhering to the laws and regulations of each state where you are licensed, and maintaining any required bonds or errors and omissions insurance.

Remember, the specific process and requirements may vary depending on the state in which you are applying for a non-resident license, so it is always best to check with the relevant state's Department of Insurance or the NIPR for the most accurate and up-to-date information.

Pay the application fee

Paying the application fee is a crucial step in the process of obtaining a non-resident life insurance license. Here is a detailed guide on what you need to know about this step:

Understanding the Fees Involved:

Non-resident life insurance license applications typically involve two types of fees: a transaction fee and state license fees. The transaction fee is a standard fee that applies to all non-resident license applications, while the state license fees vary depending on the specific state you are applying for. It's important to review the rules and requirements of the state you are interested in to understand the total cost of the application fee.

Payment Methods:

When it comes to paying the application fee, most states offer electronic payment options. Commonly accepted payment methods include Visa, Mastercard, AMEX, and electronic checks. These payment methods provide a convenient and secure way to submit your application fee.

Fee Amounts:

The application fee for a non-resident life insurance license can vary depending on the state. For example, in Texas, the application fee for a non-resident agent or agency license is $50. However, if you are applying for a temporary license, the fee is $150, which includes both the temporary and permanent license applications. It's important to note that application fees are generally non-refundable, so be sure to verify the requirements before submitting your application.

Fee Exemptions:

In certain cases, you may be exempt from paying the application fee. For instance, veterans may be eligible for reimbursement of exam fees for exams taken on or after a specific date. Additionally, if your license has been expired for a specific period, you may not need to pay the fee again when reapplying. It's important to review the specific rules of the state you are applying to for any applicable exemptions.

Additional Costs:

Obtaining a non-resident life insurance license may also incur other costs beyond the application fee. For example, some states may require fingerprinting and background checks, which carry additional fees. Moreover, if you plan to sell insurance in multiple states, you will need to obtain a non-resident license for each state, resulting in multiple application fees. Therefore, it's essential to factor in these potential additional costs when budgeting for your license application.

Submit required documents

The documents you will need to submit as part of your non-resident life insurance license application will vary depending on the state in which you are applying. However, there are some common documents that you will likely need to provide, including:

• License Number or National Producer Number (if previously licensed)
• Social Security Number (for first-time applicants only) or FEIN
• Date of birth
• Applicant, Licensee, License, and Residency type information

In addition to these basic documents, you may also need to provide additional information or documentation, such as:

• Proof of fingerprinting and a background check: Some states, like Florida and California, require fingerprints and a background check for non-resident license applications. Check with the specific state's requirements to determine if this is needed.
• Company appointment information: If you are applying for an agent license, you may need to indicate the company that will be appointing you by providing their NAIC number.
• Exam results: While some states may waive the exam requirement if you have an equivalent license in your resident state, others may require you to pass their state insurance license exam. Check with the state's insurance licensing department to confirm if an exam is necessary.
• Payment of fees: Most states will require you to pay a transaction fee and state license fees when applying for a non-resident license. You can typically pay these fees electronically using a credit card or electronic check.

It is important to carefully review the requirements for the specific state in which you are seeking a non-resident life insurance license. This will ensure that you submit all the necessary documents and meet any additional requirements, such as pre-licensing courses or training.

Frequently asked questions