Do You Need to Be Licensed where the Owner of the Policy Lives or the Insured?

[boosted_347]

I'm getting multiple answers on this so I am coming here to try to get the correct answer.

I was contacted by a past client who wants to take a life policy out on her mother, who lives in a different state. The past client will be the owner of the policy, and she lives in my resident licensed state. Will my license suffice because she's the owner and lives here? Or do I need to be licensed where the insured lives?

Thanks!

 

[Josh]

You have to be licensed in the state the application is taken.

 

[WinoBlues]

I'm getting multiple answers on this so I am coming here to try to get the correct answer.

I was contacted by a past client who wants to take a life policy out on her mother, who lives in a different state. The past client will be the owner of the policy, and she lives in my resident licensed state. Will my license suffice because she's the owner and lives here? Or do I need to be licensed where the insured lives?

Thanks!

I would check with the company you will write. I have done it a number of times. Licensed in the same state as the owner.

 

[Larry Tew]

This is one of those issues that's about as clear as mud. Some companies have their own rules that may be more strict than the respective state statutes.

I 2nd what Wino said. Ultimately it will be the underwriting department of the company that you apply to that has the final say.

 

[Norwayguy]

This is one of those issues that's about as clear as mud. Some companies have their own rules that may be more strict than the respective state statutes.

I 2nd what Wino said. Ultimately it will be the underwriting department of the company that you apply to that has the final say.

I 3rd what Wino has said. Call the company I have had a carrier send me a matrix that lists all the possibilities owner is in x state insured Y application take in xzy and found different carriers treat it differently definatly give the carrier a call.

 

[midwestbroker]

This is a good question. I am pretty sure you have to be licensed where the app is taken.

So, the past client is good to go since they will be the owner of the policy and live in your state.

I don't think you have to be licensed in the state of the insured if they are not the policy owner. But, as mentioned, I would check with the carrier just to make sure. They may have their own view of this.

Please post the answer when you receive it.

Thanks!

 

[scagnt83]

Call the company and ask for their Policy Situs Guidelines.

Usually, the state that the app was written in, delivered in, & the Owner resides is the State you must be licensed in.


Here is LFGs statement from their Situs Guidelines:

"Situs is determined by the location of the owner/applicant during the solicitation and delivery of the life insurance policy. The insured is not a party to the policy, and therefore is not the party being solicited (with the exception of certain trust arrangements, to be discussed below)."

So most likely you are good to go. Call the company to confirm though. Be sure to specify that the Owner is in your state and its being delivered in your state.

Also, ask for the Situs Guidelines to be sent to you. An UW at LFG once told me I was wrong; so I had to send them a copy of their own Situs Guidelines to prove I was correct.
Always always have it in writing if you can, just in case.

 

[xrac]

That is a great question and about as clear as mud. I suspect it may the the company who decides this.

 

[boosted_347]

Just as an update.. this company (Kemper) requires licensing in the proposed insurer's state.

 

[scagnt83]

Just as an update.. this company (Kemper) requires licensing in the proposed insurer's state.

In the "Insurer's" state or the "Insured's" state? There is a difference.

I didnt even know Kemper did LI.

Plenty of real LI companies will. I know for a fact that both LFG & NA will.