Live in One State and Want to Sell Insurance in Another? What You Need to Know about Non-Resident Insurance Licenses
If you’re an insurance agent or customer service rep in the insurance industry, you probably know you need to be licensed to sell or even discuss insurance in the state where you live. But, what if you live in one state and work in another? This is a common scenario for people who live near a state border. In this case, you’ll need both a “resident” insurance license and a “non-resident insurance license.” Unfortunately, there isn’t one license to obtain that would license you in every state!
If you plan to work in another state, follow these steps to ensure you have covered all your bases.
- Get licensed in your resident state (if you haven’t already). You may need to take an approved insurance pre-license course (if required by your state) and pass a state exam in order to get licensed, after which you can formally apply for your resident license, get fingerprinted (if required by your state), and pay any 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. Take an approved insurance pre-licensing course to help prepare you for the state licensing exam; whether it’s required in your state or not, a comprehensive insurance pre-licensing course, like the courses offered by America’s Professor, can dramatically improve your chances of passing the insurance licensing exam the first time.
- Obtain a non-resident license in the state where you work or plan on working, as well as any additional states where you plan to sell or discuss insurance. Visit the Department of Insurance website for the state(s) where you want to obtain a non-resident license to find out about the requirements and fees. NIPR.com is also a great resource to find this information. We recommend you visit this resource at least once as they have compiled the most information in one place (that we know of) and do a good job of keeping it up-to-date.
What About State Licensing Exams?
If you live in one state and work in another, you may or may not be required to pass a licensing exam in the state where you work, in addition to the state where you live. Contact the insurance licensing department in the state where you plan to work to find out whether you can obtain a non-resident insurance license without having to pass the state exam.
In either case, you will need to apply for a non-resident insurance license in the state where you work after obtaining your resident license from the state you are a resident of.
It can get even more complicated if you sell insurance in multiple states. For example, suppose you’re a salesperson for a large insurance agency that sells insurance nationwide. If your company has you selling auto insurance and homeowner’s insurance policies in 26 states, you’ll be required to maintain active non-resident property and casualty insurance licenses in all 26 of those states, as well as the state where you work, plus a resident insurance license in the state where you live. That’s a lot of licenses to maintain!
The good news: Large agencies usually have a dedicated person or department that handles licensing for sales agents, customer service reps, and others who are required to be licensed.
More good news: Most states have “reciprocal agreements,” meaning that they will issue a non-resident producer license with few or no additional requirements (e.g. pre-licensing courses, fingerprinting, examinations, etc.) beyond the license application fee, as long as you have an equivalent license in your resident state.
Some states have more stringent requirements when it comes to issuing non-resident insurance licenses, however. Florida, for example, requires fingerprints and a background check before they will issue one. California also requires fingerprints for the residents of around 25 states in order to issue a non-resident license.
What About Pre-Licensing Courses?
Adding another layer of complexity are state requirements regarding 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.
Once you’re properly licensed in both the state where you reside and the state where you work, you can begin selling policies.
America’s Professor Is Here to Help
Navigating the many rules and regulations surrounding the insurance industry can feel overwhelming. That’s why America’s Professor has compiled helpful resources for individuals who are trying to get licensed.
See our State Specific Resources page for more helpful information, and don’t hesitate to contact our knowledgeable customer service reps with any questions at 1-800-870-3130.
Got a Question?
Please read the replies below as it’s possible we’ve already answered it for you. 😉
Hi Kee Kee, I would recommend you start with a call to the other state’s DOIs but I think they will end up having you process it through NIPR.com. Good luck!
Hi Rhonda, Not usually. Check with nipr.com but I think you only need to apply for a non-resident license. Good luck!
Hello Guilherme, You will need to get a non-resident license in Florida. You can see the requirements and process at nipr.com. Good luck!
Hello, I’m not sure what All line of authority states are but it sounds like you are trying to get a non-resident license in Maryland. Most states are going to charge you a fee. Check out nipr.com to see what the rules and fees are for licenses in each state you would like to sell insurance in. Good luck!
Hello Dorota, You will need to get your resident Indiana license first then apply for a non-resident Illinois license. Please see nipr.com for more information. Good luck!
Hi, 3 years ago I got my resident license in California, but now I live in Oregon. If I plan to work only in California, can I keep my CA resident license over there (and sell insurance in California) while I’m obtaining my OR license. Basically the question is if I’m a resident in the state A, but have a resident license in the state B, can I use my resident license in the state B?
Hi Alex, If your license is still current you might be able to get a release on it and transfer it to Oregon. You would then have to get your non-resident in California I believe. You can check out nipr.com to see the general process. Personally, I’d call up the CA Department of Insurance and ask the licensing division your questions. They might have a shortcut for you. Good luck!
Hello Diana, I think you would want to contact the new state’s DOI to see if you needed the NRL. You can also try looking the state up on nipr.com and see if they have your answer too. Good luck!
Hello Chester, You will need a non-resident in each state you are selling in. It makes no difference whether you are talking to them on the phone or knocking on their doorstep. You can check out NIPR.com to see what steps are required for each state. Good luck!
Hello Dave, I would think that if the new location is added to an existing policy that wouldn’t require a non-resident license. But, if it’s a new policy I believe you would need to apply for a non-resident license in that state to write it. As always with compliance issues, we recommend your first and last call to be to the state’s department of insurance. 😉 Good luck!
Hello Patty, You should look at NIPR.com to see what the particulars are. The last time I looked you had to have your NJ license for at least 1 year before you could transfer your resident license to Florida (and not have to complete their 200-hour PC pre-license requirement). If you’ve had your NJ resident license for less than a year you will probably have to start over with the Florida pre-licensing requirement. Applying for your non-resident NJ license shouldn’t be a problem after you have your Florida license. Good luck!
Hi Jay, I’m not aware of any requirement to register in each county. That sounds like a good question for the Florida Department of Insurance. Good luck!
Hi Kevin, As long as the new company in AZ is authorized to do business there you will be fine if they appoint you. You may want to make sure your employment with company A doesn’t have you in a very restrictive employment contract which could result in a conflict of interest. Also, it’s always a good idea to check with each state’s department of insurance to make sure there aren’t any other issues that need to be addressed. Good luck!
Hi Gina, You always have to have a resident license in the state you live in and then non-resident licenses in any states you plan to sell in. If you are moving from FL to NY I would call their licensing department and see if they will allow you to transfer your license. Often you can get a clearance letter from your old state (FL) and then be given a time frame to apply for a license in your new state (NY) without having to take the licensing exam again. It’s definitely worth a call. Good luck!
Hi Steve, There isn’t a national insurance license. You are correct, it is a barrier to entry that takes time and resources to complete. Most of your larger companies have a division dedicated to licensing and making sure their producers stay current on CE and other requirements. Luckily, applying for non resident licenses usually isn’t too difficult. If you look at NIPR.com you can see what the process looks like for each state.
I have a resident corporate agency in one state and I’m the only licensed producer. To get non-resident licensing through NIPR for example in other states I assume I only need to get those licenses for the agency and not also for me as the agent. So, does each state view non-resident agency or agent as the same thing? So, I won’t need to pay for both non-res agency and agent I’m assuming.
I work with California policies and have my California license , however I have moved to Washington. I will keep working with the California agents only and not be selling any Washington policies.. can I keep just my California license or do I have to get my Washington license.. I will not be selling any Washington policies only California
Hi Michelle,
As far as we know you would need to transfer your resident license to Washington (WDI: 360-725-7144) then apply for a non-resident in California (CDI: 800-967-9331). You should call the licensing department in both of those states to verify or see if they have a better option for you. They may have an easier option for you. Good luck!
Hello Sharon, I know that you need to be licensed the same as them but I’m not sure that there is an answer that fits all states. I’d recommend calling the DOI in each state and asking them as I think the answers might be different for each state. Sorry I couldn’t be more help. Good luck!
Hello Audrey, You absolutely need a non-resident license in each state you are providing quotes for. Check with NIPR.com to see what the steps are for each state. Good luck!
I’m a Michigan resident however I go to school in Tennessee and want to obtain my life and health insurance in Tennessee. I understand that I have to file for a license through NIPR, however I want to know how will I take the test in my resident state if I’m temporarily living in Tennessee.
Hello Dr. Sherman Elbert Horton, You will need a non-resident license in every state you want to sell insurance in outside of your resident state. Please check out NIPR.com to see what the specific licensing requirements are for each state. Good luck!
Just got my Idaho resident Life&Health license & used your prelicencing course. Live right next to the Washington border so will like to get a Washington non-resident Life & Health license. I believe Washington requires 20hrs of training for each line. Can’t find too much info on the process to get the non-resident licenses. Can my hours I did in the Idaho courses count towards the Washington non-resident license? Do I have to get finger printed again for Washington?
Hi Bill, You won’t have to take another course just apply for a non-resident Washington license at NIPR.com. You’ve already done the hard part, passing the exam! Good luck and please give us a call if you have any questions.
Hello Aimee, Here is a link to our Texas insurance courses. After you have successfully passed your Texas insurance exams and obtained your resident license, you can apply for non-resident licenses in New Mexico. Most of our student complete Property and Casualty first, get licensed, then take the Life, Accident and Health course and get licensed. Good luck! Please let us know if you have any other questions.
Hello Frank, Please see NIPR.com to see which states. You can usually guarantee CA & NY won’t allow a non-resident without a pre-licensing requirement. Good luck!
My wife lives in Florida and wants to work in Texas. Her sister got her involved with this insurance company and told her she needed to be licensed. She was sent a training course and exam website. So she passed her exam on the very first try but we are now finding out that because she lives in Florida she cannot get her Texas license. We are being told she has to have a Florida license first and then a Texas license. Is this true? She has passed her texas exam but is a resident of Florida. How do we… Read more »
Hi Joe, That is true. She would have to pass the resident exam in the state she’s a primary resident of. Unfortunately that also means completing Florida’s pre-licensing course requirement/hours (!!!). After passing the Florida exam she would then be able to apply for a non-resident license at NIPR.com for Texas. I wish I had better news for you. Good luck!
I am confused. I have been an insurance producer for 30 years. My office is domiciled in New York State. I have always had my license here because my office is here and I comply with all the laws and regs of NYS. But 7 years ago I moved to CT. I still have my NY License in NY because my office is here. All of my other licenses are non-resident.
Is this Correct? Does the term Resident license refer to my where my resident office is? Somewhere along the line here i have suddenly gotten confused
Hi Scot, New York State is a state that doesn’t have a reciprocal agreement with many other states meaning they kind of play by their own rules. If I was you I would call the NYS Department of Insurance (212-480-6400 or 518-474-6600) and ask them your question. That’s the only way you’ll get the answer you need to sleep well at night. In most other states you would get a clearance letter and apply for your license in your new state, then apply for a non-resident in your old state. But it’s always good to call you local DOI. Good… Read more »
I own a retail insurance agency which is set up as a single member LLC, of which I own 100%. There are no employees or producers, besides myself. My agency is domiciled in Missouri and my agency has its Business Entity License in MO and I personally have my Individual Producer License in MO. My question(s) is – do I need to obtain both a non-resident business entity & individual producer license in each state for which my insureds will be domiciled? I see in one of the threads below, someone asked a similar question, and your response seems to… Read more »
Hi Blake, Unfortunately, your questions get into the weeds pretty quickly… they aren’t typical for what most of our students are inquiring about (usually individuals looking to get a license in another state). I don’t think there’s a single source (website) for your Business Entity questions. Your best to look up each state’s Department of Insurance website and inquire about their specific licensing rules. I can see why everyone would send you to NIPR as it’s one of the best resources out there for individuals but I can see where it wouldn’t answer your inquiries. Also, I’d be careful calling… Read more »
I’m in Hawaii and wanted to know if there is a Chart that shows the costs of obtaining a non-resident License in other states and also the cost of renewals. The NIPR site you have to click on each state to see the fees. Also, is there a way to get a discount on these fees for multiple states? Is there a discount if I’m with a company that has offices nationwide, thought I read somewhere that there was some sort of discount if there are other agents from my same company operating in those states I wanted to also… Read more »
Hi Johhny, I’m not aware of a chart that has it all in one place. I believe you are going to have to inquire with each state. Also, I’m not aware of any discounts at the funds usually go to the individual state and licensing agency. Please let us know if you find anything useful. Good luck!
I just moved to WA. Going to be with working with a company here. I don’t want to release my TX license, and the re-apple for a non-res, and not sure how long I will be in WA. Should I just apply for a non-res in WA and keep it moving or go through the full process of switching my resident license? Or wait to see how the move goes before I switch?
Hi Marcus, It sounds like it depends on the length of time you are spending in Washington. If your primary residence is going to be in Texas then it probably just makes sense to get a nonresident license in Washington until you decide to move full time. You could also call your local DOI and ask them the time frame it takes to complete the resident license transfer. It might not take too long to get a clearance letter from Texas and transfer to Washington. I’m not sure on the fees though. Good luck!
Hi Gigi, If you have your residence there then I probably would make sure to take the Wisconsin exam and apply for their residence license when you move. It would probably save you some time and extra fees unless you plan to transact insurance business before you move (in that case you need your MI RL license). Also be sure you are taking an approved Wisconsin course that will get you a certificate of completion if you take the WI RL exam. Good luck!
I am currently licensed in WI and just started a job where they adjust insurance claims for all states. I’ve been told that since WI isn’t a reciprocal to any other states, that I would need to take the NC test as it is a reciprocal state where I could then get licenses from most other states with NC being the base license. This seems strange to me as I’ve worked for insurance companies before and had non-resident licenses for other states while working here in WI writing insurance. Can anyone help with this question??
Hi Stacey, Your Insurance Department should be able to answer those questions for you, alternatively the companies who adjust in multiple states usually have a handle on non-resident Adjuster licenses (similar to how it works in insurance). Most of the time we get questions from student’s who’s states don’t have an Adjuster license so they get a resident/home state Adjuster license in Texas (since Texas allows you to do that, as do a few others) then they apply for a non-resident type of Adjuster license for the other states. I know that Hawaii is also one of those states that… Read more »
Hello Peter, Most states will give you a clearance letter and then ~90 days to move your resident license to the new state (followed up with switching to a non-resident in your old state). This usually means no additional testing for you (YAY!). I recommend calling both DOIs ASAP and talking to their Licensing Department (NC: 919-807-6800, OH: 614-644-2665) to make sure the process goes smoothly. Good luck!
Hello Shell, You can sell insurance in the states/companies you are authorized to sell in. There are often “Alien” insurers domiciled in foreign countries selling insurance in other countries, you just need to be sure they are granted the proper certificate of authority to sell in those countries.
