Selling Out of State Company in NY

[Jack B]

Since I'm in NY I'm very limited on companies I can sell.

If I get NJ license, & sell company that does not do business in NY, & write on app. client signed in NJ, would that be a risk to the client?

 

[Tahoe Ray]

Since I'm in NY I'm very limited on companies I can sell.

If I get NJ license, & sell company that does not do business in NY, & write on app. client signed in NJ, would that be a risk to the client?

Why is the client signing in NJ? Do they live there, work there, is your office there? You're asking for a lot of trouble otherwise....

 

[Josh]

It would be a HUGE risk to you. The NY DOI watches that stuff very closely and folks do get major fines for shady behavior like that. If you're selling a product to someone in NY, you should sell them a NY product.

That said, if you want to prospect in NJ you can certainly sell NJ product there.

 

[Iwillpay]

Since I'm in NY I'm very limited on companies I can sell.

If I get NJ license, & sell company that does not do business in NY, & write on app. client signed in NJ, would that be a risk to the client?

The mere fact that the number of NY life companies are so limited is a sign you should not mess with them.

 

[Jack B]

It would be a HUGE risk to you. The NY DOI watches that stuff very closely and folks do get major fines for shady behavior like that. If you're selling a product to someone in NY, you should sell them a NY product.

That said, if you want to prospect in NJ you can certainly sell NJ product there.

If I sell 95% NY companies, & only when nothing is available for client from Foresters, for example had client with history of congestive heart failure, Foresters will not accept him, Monumental would give him graded, If I sell only like 5% NJ company, there would be nothing suspicious for the state to see.

 

[Tahoe Ray]

If I sell 95% NY companies, & only when nothing is available for client from Foresters, for example had client with history of congestive heart failure, Foresters will not accept him, Monumental would give him graded, If I sell only like 5% NJ company, there would be nothing suspicious for the state to see.

I'm not sure if you want a real answer or if you just want someone to validate your thinking.

If you sell outside the state for the sole purpose of writing a non-ny product, you are going to get in trouble.

Josh is spot on here. The NY DOI looks for this type of activity. Check their website for enforcement actions....every third one is an agent doing what you're describing. I would leave that 5% on the table....

 

[GMDM100k]

What address did you put on the app? If you sold a policy in NJ but the address was in NY the company might kick it back.

If it had a NJ address I don't see how they would know. I imagine that if someone bought a policy in NJ then moved to NY they woulnt lose the coverage just because the policy was not offered there.

 

[Jack B]

What address did you put on the app? If you sold a policy in NJ but the address was in NY the company might kick it back.

If it had a NJ address I don't see how they would know. I imagine that if someone bought a policy in NJ then moved to NY they woulnt lose the coverage just because the policy was not offered there.

The residence address of insured can be in NY, as long as he signed the app. in my office in NJ.

 

[Josh]

If I sell 95% NY companies, & only when nothing is available for client from Foresters, for example had client with history of congestive heart failure, Foresters will not accept him, Monumental would give him graded, If I sell only like 5% NJ company, there would be nothing suspicious for the state to see.

New York State can and will fine agents for doing it even once.

 

[Tahoe Ray]

The residence address of insured can be in NY, as long as he signed the app. in my office in NJ.

Are you a NJ resident agent? Do you have a physical office in NJ?