Can I take the Life Insurance License Exam from Overseas?

[scagnt83]

As far as Non-Resident applications went for me, NY just took a crazy amount of time. CA was nit picky about a letter of explanation and demanded it be dated within the past 12 months... which held up the processing for 2 weeks. Im not sure why they need the letter dated within the past 12 months when the incident happened 20 years ago... but it is what it is. Just wish they had told me that on the front end.

 

[Allen Trent]

One more thing. Your resident license will often dictate where you pay state taxes. Get a Nevada, FL or TX resident license, then get your CA non-res. Just make sure to have your license number bolded in 20-point font in your emails lol.

I had read that you actually owe state taxes based on where the sale/business transaction is. With many industries or sports, it is easier to divvy up annual revenue & allocate to specific states.

no idea how you would ever do that for sales like insurance where you are travelling virtually to the state. Even if you allocated your annual revenue & divided by each state you derived the income from, it would be near impossible to do the same with expenses or residual/renewal income.

not sure you can just choose a state to place your resident license (for tax purposes) in if you have no physical location like a house or business location. would seem odd to avoid taxes in 49 states merely by saying you are in the 1 cheapest tax state even if you never place foot in it nor have the majority of your revenue in it. Everything I have read is that you either pay all states where revenue is generated, but at a minimum it is where you are physically living/located

 

[DHK]

All you need is an address - either resident or business address.

Think this through: A UPS Mailbox address... counts. A virtual office mailing address... counts.

This is the image of the response I got back from the CA DOI:

 

[Allen Trent]

All you need is an address - either resident or business address.

Think this through: A UPS Mailbox address... counts. A virtual office mailing address... counts.

This is the image of the response I got back from the CA DOI:

View attachment 8325

agree with licensing not being an issue.

I am saying that state income taxes will likely be a different issue. If you reside in California, but place your resident license in Florida it wont likely be a free pass to avoid California high state income taxes to pay no Florida income taxes, especially if little, to any, of your sales/revenue are generated in Florida.

Lots of professional athletes live in Florida, but they have to pay taxes in many state of where the income was generated (ie: golf/tennis tournaments). Last I had read, even NBA players file on average 10-12 different state income tax returns

Even online tax software states a person licensed in California but living in another state would likely be required to file a California non-resident tax return & likely owe california income tax on the income derived from California sales. Solved: Question about whether or not we have to file a non-resident return for CA (intuit.com)

 

[WinoBlues]

Great discussion.

 

[DHK]

Agreed. I misunderstood.

Residency for tax filing purposes will be based on where you reside for over 6 months of the year. I'm not sure that licensing will have much of any impact on that, if any at all.

So where you are registered to vote, where you get your mail, the state of your drivers license... will all be far more of a factor than your resident insurance license.

Forgive me if I'm a bit off-base - I have COVID right now, so I might not be thinking very clearly right now.

 

[Allen Trent]

Agreed. I misunderstood.

Residency for tax filing purposes will be based on where you reside for over 6 months of the year. I'm not sure that licensing will have much of any impact on that, if any at all.

So where you are registered to vote, where you get your mail, the state of your drivers license... will all be far more of a factor than your resident insurance license.

Forgive me if I'm a bit off-base - I have COVID right now, so I might not be thinking very clearly right now.

Heal up. Got a house full of sickness myself, but everyone testing negative for Covid/Influenza, so just another virus

 

[Tahoe Ray]

I am saying that state income taxes will likely be a different issue. If you reside in California, but place your resident license in Florida it wont likely be a free pass to avoid California high state income taxes to pay no Florida income taxes, especially if little, to any, of your sales/revenue are generated in Florida.

You're right to an extent. Some states (like of course CA) will come after your for every non-resident nickel that they can get their hands on. Some carriers (like Lincoln) will even deduct CA taxes from your commissions for business written in that state.

Practically speaking, it isn't that big of an issue. I don't know of many agents licensed in every state who submit 50 state tax returns per year.

I let my CPA tell me what I should do. That's what I pay him for.

 

[Allen Trent]

Some carriers (like Lincoln) will even deduct CA taxes from your commissions for business written in that state.

Weird that Lincoln would do that for a 1099 person as there is the possibility the person had no profit after expenses, etc.

 

[Tahoe Ray]

Weird that Lincoln would do that for a 1099 person as there is the possibility the person had no profit after expenses, etc.

Yes. It is stupid. It is just more work, the state doesn't actually make more money, and I pay more in professional fees.

If I sound annoyed about it, that's because I am. Every year.