Jeffrey Wade
The requirements for a non-resident life insurance license vary by state. In California, non-residents must submit fingerprint impressions and disclose any criminal convictions. New York requires fingerprinting for first-time applicants and those applying more than two years after their license expiration date. Non-residents with valid licenses outside of New York can apply for a New York non-resident license through the National Insurance Producer Registry (NIPR). Applicants must be at least 18 years old and provide a Social Security Number or National Producer Number, among other requirements.
| Characteristics | Values |
|---|---|
| States with non-resident licensing requirements | Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin |
| Application fee | $5.60 transaction fee, plus state license fees |
| Application requirements | License Number or National Producer Number (if previously licensed), Social Security Number (first-time applicants only), FEIN |
| Age requirement | 18 years or older |
| Fingerprint requirements | Required in California and New York for first-time applicants and those applying two or more years past their license expiration date; exemptions apply in California for certain applicants |
| Criminal record disclosure | Required in California; must obtain written consent from the Commissioner for certain felony convictions |
| Continuing education requirements | Vary by state; California waives this requirement if the resident state does not require it |
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What You'll Learn
California non-resident licensing requirements
The requirements to obtain a non-resident life insurance license in California vary depending on the individual's circumstances. Here is a detailed overview of the process and requirements:
Fingerprint Requirements
California non-resident applicants who were previously licensed as resident insurance producers in California and previously fingerprinted are exempt from this requirement. However, if you do not meet the fingerprint exemption, you must submit fingerprint impressions prior to submitting your application to the CDI. You must schedule an appointment with Accurate Biometrics to have your fingerprints taken.
Age Requirement
The applicant must be at least eighteen (18) years old, as determined by their date of birth.
Documentation
The applicant's name, SSN/ITIN/FEIN, Tax ID, license number, addresses, state of residence, and National Producer Number (NPN) must match the current Producer Database (PDB) record for the resident state. The applicant's mailing address must be either their residence address or a personal P.O. Box. Additionally, a valid country code and business email address are required.
Variable Life and Variable Annuity Applicants
Applicants seeking a Variable Life or Variable Annuity license must hold an active Life license in their resident state.
Credit Insurance Agent Applicants
Credit Insurance Agent applicants must be appointed by an authorized insurer and submit fingerprint impressions.
Burial and Funeral Expense Applicants
Individuals applying for a Burial and Funeral Expense license must not hold or be applying for a Life license, and vice versa.
Licensing Fees
The fee for a limited lines license is the same as the California resident Property Broker-Agent license fee. If an amendment is made within a year of the applicant's expiration date, the fee is $94. Amendments over a year incur a fee of $188. No amendment fee is charged if the applicant is adding Variable Contracts to an active Non-Resident Insurance Producer license.
Additional Documents
The Insurance Commissioner may require additional documents to determine whether the applicant meets the qualifications for a license.
Bond Requirement
Upon application approval, the licensee must complete and submit a $10,000 Bond of Insurance Broker, form LIC 417-5, to the California Department of Insurance before transacting, soliciting, or negotiating the sale of insurance.
Continuing Education
If your resident state requires continuing education hours, you are exempt from California's continuing education requirements. However, if you market long-term care, you must complete an 8-hour long-term course approved by California. Similarly, if you market annuities, you must comply with California's Annuity training requirement.
Waiver for Licensed Agents Moving to California
Licensed agents in good standing in another state who move to California may be eligible to waive the examination requirement when obtaining a California resident license. However, they must still complete the 12-hour California Code and Ethics course before the license can be issued.
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Fingerprint exemptions and impressions
California requires non-resident applicants for an insurance license to submit fingerprint impressions. However, there are exemptions to this rule. If you have previously been licensed as a Resident Insurance Producer in California and were fingerprinted, you are exempt from this requirement. Additionally, if you have an active resident license issued by a state that requires fingerprinting, you are also exempt from submitting fingerprints when applying for a non-resident license in California.
For those who are required to submit fingerprints, the impressions must be taken by a law enforcement agency (police department, sheriff's office, etc.) or an authorized vendor on a standard FBI fingerprint card. The fingerprints are then submitted to the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) to conduct a criminal background check. This process can be done through the CLS Online Portal, where applicants can register, pay, and schedule an appointment at one of the 800 live scan locations in California.
If you are applying for a Credit Insurance Agent license, you must call Accurate Biometrics to schedule an appointment for fingerprinting and submit the completed form LIC 442-39A with your application.
It is important to note that if your fingerprint impressions are rejected, you can have them retaken at no charge, but if a license is not issued within 12 months of submitting fingerprints, a new set of impressions will be required. The status of your fingerprint submission can be checked through the DOJ's Applicant Background Check Status website, and if the results are not shown as "Completed" after 45 days, it is recommended to contact the California Department of Insurance (CDI) for further information.
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Application procedures for non-residents
The application procedure for a non-resident life insurance license varies depending on the state. Here is a general overview of the process, using California and New York as examples.
In California, non-resident applicants for an insurance license must first file fingerprint impressions if they do not meet the fingerprint exemption. This exemption applies to individuals who currently hold a resident license in specific states, including Alabama, Alaska, Arizona, Delaware, Florida, Georgia, and more. The next step is to obtain written consent from the Commissioner if the applicant has been convicted of felony crimes of dishonesty or breach of trust. Finally, non-resident applicants can apply for a property broker-agent insurance license online via Sircon.com.
Additional documents may be required to determine if the applicant meets the qualifications for a license. Upon approval, the license can be downloaded or printed, but the licensee cannot transact, solicit, or negotiate insurance sales until certain documents are submitted to the California Department of Insurance (CDI). These include a $10,000 Bond of Insurance Broker, form LIC 417-5, and an Action Notice of Appointment, with a $32 filing fee.
For those seeking a life insurance license in California, pre-licensing coursework must be completed before scheduling an appointment for the life license examination. Fingerprint technicians are available at the license examination site in Los Angeles or at PSI's 20 test centers across California. After passing the examination, applicants can submit an electronic license application through Sircon.
In New York, non-residents can apply for a non-resident license through the National Insurance Producer Registry's (NIPR) Non-Resident Licensing. The NIPR will provide the applicant's home state certification directly to the Department of Financial Services, and applicants only need to complete the online application. Agent license applicants must indicate the company that will be appointing them, along with the NAIC number of that company.
It is important to note that each state has its own requirements for non-resident life insurance licenses, so be sure to check the specific procedures for your desired state.
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New York non-resident licensing for individuals
To obtain a non-resident insurance license in New York, applicants must complete several steps and meet specific requirements. Here is a detailed guide to the process:
Non-Resident Licensing Process
Non-residents seeking an insurance license in New York must apply through the National Insurance Producer Registry (NIPR). The NIPR offers a straightforward online application process, and applicants are encouraged to use this method. The NIPR will provide the applicant's home state certification directly to the New York Department of Financial Services (DFS), eliminating the need to contact their home state regulator. A small fee is charged by the NIPR for this service.
Agent and Broker Licenses
DFS issues both Agent and Broker Licenses. Agents require a company appointment to activate their license, while Brokers cannot be appointed to insurance companies. Non-resident applicants for Agent licenses may indicate the appointing company by supplying its NAIC number, which can be found on the DFS Directory of Insurance Companies or obtained from the company itself.
License Duration and Fees
The license fee for non-resident applicants is based on the license duration. If the license is issued for one year or less, a $50 fee is assessed. For licenses with a duration of more than one year, the fee is $100. Additionally, a $10 CE fee is charged for applicants reapplying for a license they previously held in New York if the license has been inactive for less than two years and is not CE compliant.
License Expiration and Renewal
The expiration date for individuals is based on the applicant's date of birth, falling on an odd or even year depending on the birth year. The renewal period begins 180 days before the license expiration date and ends on the expiration date. Licenses can be renewed electronically if they are still active and the expiration date is within the next 180 days.
Address Requirements
Non-resident applicants for insurance licenses in New York must ensure that their residence and/or business address is not in New York. If both addresses are in New York, the transaction will be declined. However, if only one address type is in New York, the transaction will be allowed.
Prelicensing and Examination
Before taking the state licensing exam, applicants are required to complete prelicensing. Certain designations, such as CLU® and CPCU®, are exempt from prelicensing education requirements and specific exam parts. After passing the exam, applicants must submit their license application, along with any required paperwork, to the Department of Financial Services.
Additional Requirements
Some license types, such as Life Settlement Broker, require a passed exam record on file or active licensing for the 'Life' line of authority. Additionally, applicants for certain licenses, including Excess Lines, must hold an active Property and Casualty Broker license.
Company Requirements
Insurance companies providing services in New York must apply for a license before commencing operations. Depending on the lines of authority and services offered, multiple firm licenses may be necessary. Firms should ensure that the appointed agent in charge possesses the required licenses and gather proof of incorporation or foreign qualification for out-of-state firms.
By following these steps and meeting the outlined requirements, non-residents can successfully obtain an insurance license in New York.
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Non-resident licensing fees
The fees for non-resident life insurance licenses vary depending on the state and type of license required. Each state has its own fee structure, which may include application fees, renewal fees, and processing charges.
For example, in Pennsylvania, the cost of a resident life insurance license is approximately $55, while the biennial renewal fee is $35 for residents and $70 for non-residents. In Illinois, the application fee is significantly higher at $215, making it one of the most expensive states to obtain a life insurance license.
When applying for a non-resident license, there is typically a standard $5.60 transaction fee, and additional state license fees may apply depending on the specific state. It is important to check the rules and requirements for each state, as they can vary significantly.
Some states may require an exam for a non-resident license, while others may not. For instance, if you have a resident insurance producer license in Alabama and want to obtain a non-resident license for North Carolina, you may only need to apply for the non-resident license without taking an exam.
Overall, the cost of obtaining and maintaining a life insurance license can vary widely, and it is essential for aspiring agents to understand these costs, which may include fees for different license types, roles, and authorities.
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Frequently asked questions
To obtain a non-resident life insurance license in California, you must submit fingerprint impressions and file a $5.60 transaction fee and any state license fees. If you have been convicted of felony crimes, you must obtain written consent from the Commissioner before engaging in the business of insurance in California.
To obtain a non-resident life insurance license in New York, you must complete fingerprinting and submit a $5.60 transaction fee and any state license fees. You can apply through the National Insurance Producer Registry (NIPR) and will need to indicate the company that will be appointing you by supplying the NAIC number.
If your resident state requires continuing education hours, you are not required to comply with California's continuing education requirements. However, if you market long-term care or annuities, you must complete specific training requirements.
The process for obtaining a non-resident life insurance license without a home state is similar to the regular non-resident license process. You will need to pay a $5.60 transaction fee and any relevant state license fees, and provide a Social Security Number or FEIN.
Yes, some states have mutual recognition agreements or license reciprocity, meaning that a non-resident license is not required. These states include Alabama, Alaska, Arizona, Delaware, Florida, Georgia, Hawaii, Idaho, Kansas, Louisiana, and many others.
