Renewals and Licensing

Discussion in 'Life Insurance Forum' started by inreverse, Jul 31, 2017.

  1. inreverse
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    inreverse Well-Known Member

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    Do I need to maintain a license in a state when I am receiving renewals from policies previously sold in that state under that license?
     
  2. ICACharleston
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    ICACharleston Well-Known Member

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    I don't think insurers can pay commissions to unlicensed persons but don't take my word for it. Lapse your license and find out.
     
  3. DHK
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    DHK Well-Known Member

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    Considering that renewals can be paid to a named beneficiary in the event of an agent's death - regardless of licensing of that beneficiary, it would stand to reason that renewals can be paid to an agent with a lapsed license.

    However, don't expect anything considered a commission to be paid as that would require current licensing. Commissions and renewals are two different forms of compensation.

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    But the real answer to the question would be... to call the insurance company licensing and compensation desk and ask them.
     
  4. Superdad99
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    Superdad99 Member

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    You can receive renewals after you license in a state expires. Most companies will even pay renewals to the beneficiary upon death. You just cant sell or service the business anymore.
     
  5. pfg1
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    pfg1 Well-Known Member

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    I think it depends on what the renewals are for...and the carrier. I know some carriers will not pay renewals on medicare business if you are not licensed/contracted.
     
  6. Josh
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    Josh Well-Known Member

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    pfg nailed it. For most life insurance renewals it won't impact it, but it doesn't hurt to check with them.

    Medicare advantage? Absolutely have to be not only licensed, but recertify each year. I'm not sure of any others that categorically require it, but I would guess the list is pretty small.
     
  7. inreverse
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    inreverse Well-Known Member

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    Thanks for the reply's. I called my 3 largest (by policy holders), they all said no license is needed for renewals.
     

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