This new focus was revealed in a memo from the NAIC Producer Outreach Subgroup. The senior vice president of the Independent Insurance Agents and Brokers of America, Wes Bissett, said, “that nonresident producers confront three layers and redundant licensing requirements: individual license, license for the agency, and registration as a foreign corporation with the secretary of state.”
Bissett went on further to say, “The foreign corporation registration requirement is particularly irksome, in that insurance producers are already subject oversight by the insurance commissioner, who in addition acts as the agent for any service of process.”
If an insurance agent wants to sell insurance in multiple states they have to apply individually to each state, a time consuming task especially considering each state takes a different amount of time. There should be a smoother process for agents to apply to multiple states despite the fact that each state has its own separate insurance department. For instance a website could be set-up for insurance producers to apply for a non-resident license in any state without having to go to each state department website and hunt down the proper paperwork and process.
