The insurance industry is highly regulated by both the state and federal government, requiring agents and agencies to maintain licensing compliance in each state they solicit and sell insurance. In addition to maintaining your book of business, your responsibilities as a licensed agent also include maintaining your resident and non-resident state licenses, appointments with carriers in each state you solicit insurance products and annual or biennial continuing education requirements required by your home state. To further complicate the issue, if you hold an insurance license in multiple states or you sell more than one line of insurance, the maintenance of your various state licenses is compounded.
For example, if you hold a resident license in Texas and want to maintain your Indiana non-resident license, you must renew it every two years on the last day of the license issue month and pay a fee in an amount of $90. However, if you hold a resident license in Illinois, for example, and want to maintain your Indiana non-resident license, your renewal fee would cost $250 since the Indiana Department of Insurance imposes a retaliatory fee, in addition to its renewal fee. And, in the event you forget to renew your license on time and need to reinstate it, you will be required to pay a reinstatement fee of $270 in addition to your renewal fee. Of course, this reinstatement fee is also increased in those states where retaliatory fees are imposed!
Sounds confusing, right? Read More