Question for you folks that work multiple states

[Fisher]

I am finally going to venture out into multiple states (focusing on life for now - med supps in the future) and I've got a question for those that have done it.

I have all of my resident state contracts set up to pay my LLC directly. I am the only person that writes business through the corporation. The LLC does have a state license but does not have E&O (but I have it on me, of course.) I have personal non-res licenses in place.

For multi-state business is it necessary for the LLC to have both non-res licenses and E&O?

Thanks. Enjoy the day.

 

[insuranceguy088]

My understanding is as follows:

For some states, you will need a non-resident personal license as well as a non-resident agency license in order for your agency to be appointed and to have it receive commissions.

For other states, you will not need to have your agency licensed to have the agency receive commissions. It is on a state by state basis.

Also, some companies like UHC will require that both you and the agency be appointed regardless of the state.

As for the E&O, my understanding is that you should be able to list the agency on your personal policy if you are the only one writing business.

I am 90% on these answers, but anyone else can feel free to chime in.

 

[Matthew King]

It is as the Insurance Guy088 says about the licensing, the best answer for this is it depends on which state and sometimes what carrier you are talking about. I would recommend expanding one state at a time, adding only what you need.

Unless you enjoy spending extra money, I would handle it one carrier at a time, and one state. If you eventually have to have both types of licensing, then get both. Unless of course, you have business rolling in from those other states and that's what has prompted the expansion into other states.

For instance, for my agency, I didn't have to get one for Alabama, but I did have to have one for Washington. So I picked up the Washington one and not the Alabama one.

I do believe he is also right on the E&O, however, the best place to double check that is who you got your E&O through.