I've Forgotten. License Issue. Any Guesses?

[Mark]

New York is a tough state. A lot of products are not approved there. If someone comes from NY, and is in GA, I have to make sure that the product that I'm writing them is also approved in their state. Example is, UHL is not approved in New York, so even if they are in GA where I have a Lic, and the product is aproved in here GA, I can't write him. If the product had been available in New York and he came to Ga and I had a GA Lic, I could have wrote him a policy, even if I didn't have a NY Lic. It goes by where he is standing when he signed the app.

I've seen talk at the NAIC, fighting over this rule, when it comes to selling over the internet. They are fighting whether is matters where the agent is, or the client is when writing business over the net. Example. I'm in GA, with a GA Lic, and I do a paperless app over the web and the client is in Texas, where I don't have a lic, can I still write him. Everyone is fighting over this, and they say the rule might change on this.

I've also seen talk at the NAIC, that they are trying to make 1 lic, that will be valid in 20 something states. They have not talked about the price yet or how it would work.

 

[Winter_123]

That's the reason most apps have a place on them where you put the city/state where it was signed. You may also want to call the company as some companies will not take it as that. Most do though.

As with most contracts, the city and state where it is signed must be added so that the courts will know which state laws will apply if there is a dispute. Some contracts waive that and say that if there is a dispute then the laws of the state of XYZ will apply but with insurance contracts the state controls that I think.

 

[somarco]

I've also seen talk at the NAIC, that they are trying to make 1 lic, that will be valid in 20 something states. They have not talked about the price yet or how it would work.

Seems like the MS DOI (of all places) did something along these lines recently but for term life only. Allowing you to sell in any state without a NR license.

You bring up a good point about NY carriers & products. Some carriers have a completely different produce just for NY and of course the commissions (at least on life) are limited.

So, what is being sold here? Life, DI, health, what?

 

[Todd King]

As with most contracts, the city and state where it is signed must be added so that the courts will know which state laws will apply if there is a dispute. Some contracts waive that and say that if there is a dispute then the laws of the state of XYZ will apply but with insurance contracts the state controls that I think.

Exactly. So if it wasn't feasible to sell to someone who lived in another state, but was in your state when the app was signed, there would be no reason to have it on the app because you wouldn't be able to buy it while in another state, you would only be able to buy it while physically being in the state you reside. The state where you reside is listed by your present address. So they have to put that on there to be able to see in what state you were in while signing it.
Some states don't allow you to do this. For example, while I was still living in SC, someone from NC could come to me and sign the app, perfectly ok with SC. But if it were the other way around...NC doesn't allow it! So yes, some of it does depend on the state, but the insurance companies also have a say in it. Like I said though, most companies allow it.

 

[joeblow]

So, what is being sold here? Life, DI, health, what?

Whew, seemed so obvious [to ME] I didn't even mention it. Life. That's pretty much the only thing I deal with.

 

[Winter_123]

Seems like the MS DOI (of all places) did something along these lines recently but for term life only. Allowing you to sell in any state without a NR license.

I don't quite follow this. How can a state grant authority to an agent to function as an agent in another state? That would be under the control of the state where the activity takes place. What am I missing here? Are you saying that MS can license an agent and that agent can sell in my state? Does not compute for me yet.

 

[somarco]

seemed so obvious [to ME] I didn't even mention it. Life.

Of course it seems obvious to you. You are the author.

Had you posted in the life section, rather than general insurance, it would have been obvious.

And since I do not know you, or know the lines of coverage you write, there is no reason to assume I would know . . . which is why I asked . . . TWICE . . . before you responded.

How can a state grant authority to an agent to function as an agent in another state? That would be under the control of the state where the activity takes place. What am I missing here? Are you saying that MS can license an agent and that agent can sell in my state? Does not compute for me yet.

Reasonable question that I cannot answer. I did qualify my comment by saying "seems like". I do recall seeing something screwy about MS a few months back with regard to term insurance. Can't find it now.

It may have been to allow MS agents to sell across state lines or not. Thinking back, it may have been allowing folks to sell term life in MS without a license.

Or maybe I am just dreaming all this up.

Any MS agents here who can put me in my place?

 

[joeblow]

Of course it seems obvious to you. You are the author.

Had you posted in the life section, rather than general insurance, it would have been obvious.

And since I do not know you, or know the lines of coverage you write, there is no reason to assume I would know . . . which is why I asked . . . TWICE . . . before you responded.

Well, color me dense, give me 50 lashes w/ a wet noodle, and banish me to the hinterlands. Mea culpa.

I do appreciate the responses. And your previous response directly addressed the Life insurance question, so it didn't sink in to me that my post was unclear. Consider me chastened.

 

[Tomfromtheshade]

I believe that as long as the person did not visit the your state for the sole purpose of buying life insurance that they absolutely may buy a policy from you. For example, if the client was on vacation and saw some crazy car accident and decided to buy life insurance that day then it would be okay. If they drove across state lines specifically to come see you to buy life insurance then it is not cool. I live in New Jersey, about 5 minutes from the PA border and people do that **** all the time here. I can't ever recall anyone getting caught, but I wouldn't want to be the first one LOL.

 

[HomeService]

NY is very very touchy, I moved to TX from NY. He needs to buy in NY from a NY licensed agent. Or , you could try to get non-rez NY license while in TX, but it is tough. NY is the one state -to not mess with.