An agent or producer’s license means that the individual or business has demonstrated that they possess the knowledge and skills necessary to understand insurance products, laws, regulations, and ethics. Agent licenses show that the carrier is a qualified entity. DenTen needs to keep these licenses up to date in every state where it operates.
In the United States, insurance laws are based on state regulations. To sell insurance in a specific state, the individual and business entity are required to hold licenses in that state. There are two categories of residency for state licenses:
Definition
Notes
Resident License
A license that permits an individual insurance producer/agent or a business entity producer/agency to operate within the state where they reside.
DenTen is registered in New York state, and therefore, is only considered a resident for New York licenses.
There are two types of producer/agency licenses DenTen needs to register and keep up to date:
Non-Resident License
A license that permits an individual insurance producer/agent or a business entity producer/agency to operate outside their state of residence.
Because DenTen is registered in New York, any license for another state will always be a Non-Resident license.
Type of License
Individual Producer’s License or an Agent License
Individual
This license allows individuals to sell, solicit and negotiate insurance in a specific state.
Agency License or Business Entity Producer License
Business
This license is required when an individual agent is operating as a business and not solely as an individual.
Most states require an agency/business producer license in addition to an individual license to conduct business as an that state.
Note: For a business entity to apply for a non-resident agency license in a specific state, the key individual(s) (i.e., owner, officers, directors) must hold an individual producer license in that state.
Important: To register DenTen for an agency license in a specific state, Michael Esposito must first be registered for an individual producer’s license in that state.
Note: When applying for an individual producer’s license or business agency license, you may need to change license type from individual to business entity or vice versa.
This section will cover:
- Applying for and Renewing an Individual Producer’s License
- Applying for and Renewing an Agency License