- 145
Client wants annuity product that is not available in his home state. Willing to go to neighboring state to write application. Is this allowed?
Out of State
- Thread starter Experienced Agent
- Start date
- 16,877
No. You can't go to a different state for the sole purpose of buying an insurance product that is not available in your state.
But it probably happens all the time, because its an easy grey area to fall into - since you can write business in a different state - just not for that reason specifically.
A good friend of mine who is very successful in this business told me a while back "avoid anything that's not black and white".
- 10,318
The issue state is dictated by the listed address of the Owner of the Contract.
So you cant just cross state lines to sign the papers. The client would need an actual residence/business in the other state...
So you cant just cross state lines to sign the papers. The client would need an actual residence/business in the other state...
In order to sell insurance in another state you want to make sure that you apply for a non-residence license in that state so that you do not violate any laws and regulations. You can easily find an application for a non resident license by going on that state's Department of insurance website. They should have an application you can fill out and send in.
If you have any further questions you can contact TesTeachers at 888-422-7714.
If you have any further questions you can contact TesTeachers at 888-422-7714.
- Thread starter
- #6
- 145
I don't intend on writing this annuity. I'm not contracted with the company that sells it. I'm trying to get information that would convince my client to not do this with another agent.
- 10,318
Again, it cant be done unless the client has a residence in the other state... its the law.
- 11,272
This doesn't come up often for me. However, if someone from out of my state, came into my state, to buy a product from me, approved for sale in my state... I can sell it to him.
That's why the app asks for the city/state the application was SIGNED in.
Call one of your carriers and ask their new business &/or compliance department for a specific answer.
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Don't forget that not only would you (or the other agent) have to be licensed in the other state... but you'd have to be appointed to sell that product in that state as well.
That's why the app asks for the city/state the application was SIGNED in.
Call one of your carriers and ask their new business &/or compliance department for a specific answer.
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Don't forget that not only would you (or the other agent) have to be licensed in the other state... but you'd have to be appointed to sell that product in that state as well.
- 148
Definitely varies between carriers. There are carriers that say the client needs to have a "reason to conduct business in the other state aside from buying an annuity." However, most don't let that fly.
- 8,707
+1 every carrier is different and the couple of times this has come up I always have to call the carriers to make sure they approve of it and have any extra forms of letter of instruction as needed.
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