Examkin

Question

Difficulty: MediumLicensing Requirements and Types

Thomas has held an active resident property and casualty producer license in State X for five years. He recently relocated his primary household to State Y and plans to continue his career as a producer there. Under standard NAIC uniform licensing laws, which of the following correctly describes the process Thomas must follow to secure his resident license in State Y?

  1. Apply for a resident license in State Y within 90 days of establishing legal residence to bypass the pre-licensing education and examination requirements.Answer
  2. B
    Keep his State X resident license active and apply for a non-resident license in State Y, since his original license remains in good standing.
  3. C
    Request a temporary producer license in State Y, which grants him up to 180 days of selling authority while he studies for the State Y examination.
  4. D
    Resume selling policies immediately under the implied authority of his State X license, provided he notifies the State Y Department of Insurance within 30 days.

Answer

Apply for a resident license in State Y within 90 days of establishing legal residence to bypass the pre-licensing education and examination requirements.
Under the standard NAIC uniform licensing laws, when an insurance producer moves their primary residence from one state to another, they must apply for a resident license in the new state. If the application is filed within 90 days of establishing legal residence, the new state will waive the pre-licensing education and examination requirements, provided the producer was in good standing for the same lines of authority in their previous home state.

Step-by-Step Solution

1
Identify the producer's current situation and intent.
Thomas is an active resident producer in State X who is moving his primary residence to State Y.
Determining residency status is necessary to establish the type of license required in the new state.
2
Determine the statutory rule for producers changing resident states.
Producers must surrender their old resident license and apply for a new resident license in their new home state.
An individual can only hold one resident license, which must be in their primary state of residence.
3
Apply the exemption rule for license transfers.
Applying within 90 days of establishing residency in the new state exempts the producer from repeating the pre-licensing exam and coursework.
The NAIC uniform licensing standards facilitate producer mobility by waiving exams for producers in good standing who transfer within the 90-day statutory window.

Key Concept

Resident License Transfer and Examination Exemptions
Rate this question

Topics

Licensing Requirements and Types

More questions from this topic