When is it working outside of domiciled State

[URDRWHO]

I hate to break into this debate with a serious question, but...
Just to confirm: you are simply extending liability coverage from the main home (in your state) to the dock of the insured in another state?
Did you ask the insurance company if you need a license for this?
Did you make the change or did you have the insured call the insurer to make this change?

1. Extending liability.
2. I can't talk with the insurance company ... no direct contract.
3. Insured called the insurance company first and the insurance company said they must call ####### (name of agency I have membership with) to have it endorsed.

I am not sure if insurance companies get into the debate of producer State licensing. In my State there is more that you can do unlicensed than I knew and some is dependent on the question "are you getting a commission?" Because of all the laws of each State I don't think the Insurance company gets involved except to know that your are a licensed producer. It would be a big liability for the insurance company to determine State producer laws. But maybe????

Another thing that was clarified in reading the law.
As long as it is disclosed I can also charge a fee (commercial business) on top of the commission which is something that some people would say you can and other's said no. Well it pays to read the law. You can't charge to complete an application.

"(a) General rule.--A licensee may charge a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business. The fee charged by the licensee shall be disclosed in advance in writing to the person and shall be reasonable in relationship to the services provided."

 

[URDRWHO]

Ok, I'll put this to be.

I've been working with compliance in the PA DOI for some nasty anti-indemnity issues that the GC's have been doing. Also he was interested in seeing Acord 25 forms that the GC's have filled in on their own and want producers to do the same. The problem is if we did so it would be misrepresenting the policy. Ok, so I called him.

He said because the insured can call and have the endorsement added on their own, it is not a sale of insurance so it is not a licensing issue.

Because an endorsement is only an amendment or addition to an existing insurance contract it is not selling insurance.

It is his opinion that as long as the endorsement is added on a legal PA insurance contract, it really doesn't matter where the property is located. It is a change to the contract and not a sale.

But to cover his you know what, he is running it by legal.