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Difficulty: MediumLicensing Requirements and Types

Marcus is an actively licensed resident property and casualty producer in State X. He recently relocated his primary home and principal place of business to State Y. Under standard state insurance regulations, what must Marcus do to secure a resident producer license in State Y without being required to complete prelicensing education or pass the state licensing examination?

  1. A
    Operate using a 180-day temporary license in State Y until his previous resident license is formally converted.
  2. B
    Rely on his implied agent authority to continue writing policies in State Y as long as his appointing insurer operates in both states.
  3. Submit an application for a resident license in State Y within 90 days of establishing his new legal residence.Answer
  4. D
    Retain his resident license in State X and simply apply for a non-resident producer license in State Y.

Answer

Submit an application for a resident license in State Y within 90 days of establishing his new legal residence.
Under standard insurance regulations based on the Uniform Producer Licensing Model Act, when a licensed resident producer moves to a new state, they are granted a 90-day window to apply for a resident license in their new home state. If they apply within this timeframe and their previous license was in good standing, the new state will waive the prelicensing education and examination requirements.

Step-by-Step Solution

1
Identify the producer's current licensing situation and intended action.
Marcus is a resident producer who is physically relocating his primary residence and business operations to a new state.
Determines which licensing rules apply, specifically distinguishing between a transfer of residency and non-resident licensing.
2
Apply the standard regulatory rule for relocating resident producers.
Under the NAIC Uniform Producer Licensing Model Act, relocating producers must apply for a resident license in the new state within 90 days to waive prelicensing and examination requirements.
Evaluates the available options against the standard 90-day reciprocity rule for interstate relocations.

Key Concept

Resident License Transfer and the 90-Day Rule
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Topics

Licensing Requirements and Types

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