Non-resident license/appointment questions

[Guest]

We are all licensed in our 'home' state. Say you want to get a license in another state, via the License Registry. It all goes well and you get the license number.

Say you write for a national company like Aetna or UH, etc. Do you have to go thorugh the appointment process all over again with them for each new state? Or do they just want a copy of your license.

Also do most E&O policies cover you ONLY in your home state, or in any state you are licensed?

Thanks,

Al

 

[Crabcake Johnny]

You need to get appointed by your carrier in each state you're licensed in and pay the appointment fees. So if you get a non-resident license in Virginia you cannot write an Aenta app in VA until Aetna appoints you in that state.

 

[Steve]

You need to get appointed by your carrier in each state you're licensed in and pay the appointment fees. So if you get a non-resident license in Virginia you cannot write an Aenta app in VA until Aetna appoints you in that state.

For those who aren't familiar with me, just getting in the business and will be a captive agent...

But my question is: You have to pay for appointments? Also, you pay for appointment, and do they require a commitment to production? For example, if I (as an independent) become appointed with a dozen carriers in a specific state, am I going to lose that appointment if I can't produce "$x" amount of production for that carrier in that time period?

Thanks for the insight.

 

[realistagent]

Who are you appointed with?

 

[realistagent]

I mean. Who are you captive with?

 

[Steve]

Who are you appointed with?

I mean. Who are you captive with?

Sorry, my question wasn't clear enough. I was stating surprise that companies required a fee for appointment. I had not thought about it much in the past.

What is the range of fee required, and what are the typical minimum production requirements to remain appointed?

 

[Crabcake Johnny]

Appointment fees per state are minimal - around the $10 range. Some states have no appointment fees - like MD. When you're independent there normally isn't any productions requirements. I'm still appointed with American Republic since 2004 and have yet to submit a deal. I'm appointed with 4 life companies, two of which I've never written a deal with.

However, captive companies normally do have production requirements. When I was with Mega I think (don't quote me) that an agent had to write $10,000 per quarter or they lost their appointment.

 

[Crabcake Johnny]

And here they are:

http://www.goldenrule.com/pdf/34547m06F.pdf

 

[Steve]

Thank you for the response, John. That clears it up quite a bit for me.