State RegulationsPA specificDifficulty 2/5
A producer licensed and in good standing in his resident state wants to sell life insurance to Pennsylvania customers without relocating. How does Pennsylvania law handle this?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Pennsylvania admits nonresident producers through its own nonresident licensing process administered by the Pennsylvania Insurance Department (40 P.S. § 310.5). The anchor of the process is the producer's home-state license: a producer licensed and in good standing in his resident state may obtain Pennsylvania nonresident authority without establishing residency in this Commonwealth. Relocation, waiting periods, and federal waivers play no part in the scheme.
Why the other options are wrong
- A) No residency duration is imposed; the nonresident license rests on the home-state license under 40 P.S. § 310.5, not on moving to Pennsylvania.
- C) Licensing authority belongs to the Pennsylvania Insurance Department regardless of the insurer's character; no insurer status waives producer licensure.
- D) Insurance producer licensing is state regulated; a home-state license alone does not authorize selling to Pennsylvania customers without the nonresident license.
Memory hook
Home state holds the root license; Pennsylvania grafts the nonresident branch.