I am thinking of getting a non-resident license in one or two other states and the purpose would be to expand the business I do in my particular niche. I am wondering if the insurance companies frown on this? Someone told me there might be a problem with getting paid commissions…is that true? Any input would be appreciated.
Does Anyone Write Business Out of State on a Fairly Regular Basis?
- Thread starter Nanci
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- 1,310
I write out of state daily. Never a problem.
- 11,280
You write p&c too?..............
- 1,310
No..would never want to write a local-specific product from afar. It is done by call centers all the time, just 40, 000 harder than Med Supps and not worth the effort.
Sorry..mobile app didn't show this question was under the P&C section!
Sorry..mobile app didn't show this question was under the P&C section!
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- 2,177
More than 2,000 T65 every month in my metro area. They keep me too busy to look beyond that.
- Thread starter
- #6
Sorry, I think I should have added that I am looking to write commercial lines out of state.
I write business out of state regularly. Never had a problem gettin commissions paid as long as licensed properly. We have individual and corporate non resident licenses.
- 1,016
It totally depends on the carrier. Some companies are perfectly fine with an agent selling out of state. Other carriers are dead set against it.
- some carriers use a radius guideline (usually 50-100 miles), meaning that your agency needs to be located within that radius of a state border to be allowed to sell in that state.
- some carriers demand a brick and mortar agency be located in the non-resident state.
- some carriers who were once receptive to out of state agents are now becoming more strict about it because they're getting burnt. One of my sales reps told me I can't sell out of state because the company recently experienced an E&O nightmare that resulted from an agent not fully knowing the difference in state laws.
Point is, carriers all feel differently about it. So before you expand, talk to your carriers. And don't underestimate the learning curve it takes to learn each state's differences. Some states are a real pain!
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