Examkin

Question

Difficulty: MediumLicensing Requirements and Types

Marcus currently holds an active resident producer license in State A. He permanently relocates to State B and wishes to obtain a resident producer license in his new home state. Under standard state insurance regulations and the NAIC Producer Licensing Model Act, which of the following is required for Marcus to be exempt from State B's pre-licensing education and examination requirements?

  1. He must submit a proper application for a resident license in State B within 90 days of establishing his new principal residence or cancelling his previous license.Answer
  2. B
    He must obtain a temporary producer license in State B, which is valid for up to 180 days, while waiting for his original state to formally transfer his credentials.
  3. C
    He must complete a minimum of 24 hours of State B continuing education within 30 days of his move to validate his existing credentials.
  4. D
    He may continue writing business immediately under apparent authority, provided he formally notifies State B's Commissioner within one year of his relocation.

Answer

He must submit a proper application for a resident license in State B within 90 days of establishing his new principal residence or cancelling his previous license.
Under standard NAIC model regulations, a producer who moves to a new state is exempt from pre-licensing education and examination requirements provided they submit an application for a resident license in the new state within 90 days of establishing legal residence or cancelling their previous resident license. They must be in good standing for the same lines of authority.

Step-by-Step Solution

1
Identify the core regulatory scenario presented in the stem.
The scenario involves a licensed producer relocating to a new state and seeking a resident license without repeating pre-licensing education or exams.
Understanding the specific licensing transition is required to apply the correct statutory timeline.
2
Apply the NAIC Producer Licensing Model Act rules regarding interstate relocation.
The Model Act stipulates a specific grace period for reciprocal exemption of pre-licensing requirements when a producer moves to a new resident state.
This establishes the exact legal timeframe required to answer the question.
3
Determine the exact timeframe for the exam exemption.
The standard timeframe to apply for a resident license in the new state and claim the exam exemption is 90 days from the cancellation of the previous license or establishment of the new residence.
This 90-day window is a fundamental compliance standard tested in licensing exams.

Key Concept

Resident License Relocation and Exam Exemptions
Rate this question

Topics

Licensing Requirements and Types

More questions from this topic