State RegulationsVA specificDifficulty 2/5
A producer holding a Virginia resident license accepts a position with an agency in another state and relocates there permanently. What does Virginia law require?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Va. Code § 38.2-1826, a producer who moves out of Virginia must immediately cease acting as a Virginia producer, and the license terminates upon the out-of-state move. Residency is the foundation of a resident Virginia license; once the producer no longer lives in the Commonwealth, the resident credential cannot continue to be used. The correct path afterward is to pursue whatever nonresident licensing the producer's new home state framework allows, not to keep transacting business on the terminated Virginia license.
Why the other options are wrong
- A) There is no grace period to keep selling; the duty to cease acting as a Virginia producer takes effect immediately upon the move under Va. Code § 38.2-1826.
- B) The license does not self-convert to nonresident status; a resident license terminates on the out-of-state move.
- D) Riding the license to the next renewal is not permitted; termination occurs when the producer moves out of Virginia, not at renewal time.
Memory hook
Move out, stop selling: a Virginia resident license dies the day you leave.