Page 1 of 1
New Broker; Business out of State
Posted: Tue Jan 26, 2010 1:23 pm
by NewBrkerCA
I am currently licensed as a P&C Broker/Agent in California and in the process of starting my own broker office. Could someone educate me on the process of;
-Being able to do business in another state(TX)
Do I need to take exams in TX to do business there(or whichever state I plan on doing business in besides CA)? Cost to get licensed there? How long does it take?
Many thanks for any assistance.
NewBroker
Re: New Broker; Business out of State
Posted: Tue Jan 26, 2010 4:32 pm
by GRCinCA
You can do it here - I've had no problems with their service.
https://www.sircon.com/ComplianceExpres ... crbid=9999
Re: New Broker; Business out of State
Posted: Tue Jan 26, 2010 5:25 pm
by NewBrkerCA
Thanks Greg that will be a valuable tool as I look into other states. I noticed, however, that Texas wasn't listed. I imagine you just have to go to Texas' Department of Insurance website.
Re: New Broker; Business out of State
Posted: Wed Jan 27, 2010 12:23 pm
by pita3333
Texas does not subscribe to Sircon, But does utilize NIPR (National Insurance Producer Registry).
Link to TX licensing web for rules:
http://www.tdi.state.tx.us/licensing/agent/indexag.html
Link to Non-Resident app at NIPR:
http://www.tdi.state.tx.us/licensing/agent/indexag.html
Start here,
http://www.tdi.state.tx.us/licensing/agent/indexag.html , gives you the specific rules for Texas.
It is a pretty simple process. You can pay fees via credit card and have license within a few days typically. If you are a corp or have a entity name, be sure to get that licensed as well. Do the individual first, then when that is issued do the entity. Also be sure to file the entity with the Texas Sec of State to use the name.
Following is link to the NIPR site for all state specific rules...even those they can't do!
http://www.nipr.com/non_resident_paper_licensing.htm
Licensing is one of my primary duties...I keep all these sites on my favorites and go there often.
Good luck!
Re: New Broker; Business out of State
Posted: Wed Jan 27, 2010 12:48 pm
by WorkComp&Sense
Texas will also require you to incorporate in Texas as well as file for an approved trade name.
Re: New Broker; Business out of State
Posted: Wed Jan 27, 2010 12:53 pm
by NewBrkerCA
Michael,
Thank you so much for the response. Very Helpful!!!
Re: New Broker; Business out of State
Posted: Wed Jan 27, 2010 2:33 pm
by kevinraz
Hey NewBrokerCa:
You really need to evaluate if doing business in other states is a good business decision. Texas is one of the most difficult states for outside producers to work in. At one point I was licensed in 15 or so states but I had an admin who could handle the related paperwork for me. Trying to manage this yourself can be difficult.
Some of the hurdles you will have to clear: licensure, bonding, ensuring that continuing education requirements are met (can vary by state), appointments with new companies (most carriers have separate companies for TX business). The one post about incorporating in TX is new to me but I'm not surprised. Texas protects it's agents very well.
Will the income from whatever you write be worth the money and hassle? If you are a new broker the answer most likely is no. I'd recommend getting a referral to a good agent in Texas & let them handle it.
When I was an agent I did a lot of work and spent a lot of money to write what ended up giving me less than $1,000 in commission. It was a total waste of time & I should have said "no, thanks". Be sure this is really what you want to do before getting involved.
Re: New Broker; Business out of State
Posted: Thu Jan 28, 2010 2:23 pm
by pita3333
Kevinraz:
Most of that no longer applies. Example: Cont Ed, for most non-res states it is not required. Bonds, some states still require of non-res but most do not. Much of these requirements have been standardized over the last several years, states are recognizing reciprocity these days.
One that is a big issue ... making sure you fully understand the rules in that state. Also making sure you understand the differences in coverage forms and exposures. Here in CA hail and windstorm are not typically big issues...sure is diff story in many mid-west states!
I do agree that if you have more than 3-4 non-res licenses and do not have the resources to have an in-house licensing person, it is best to go to a service who knows the rules. There are a few out there.
As for the comments on cost versus revenue. Each person has to weigh the reasons they do things, but that is generally a valid statement.
Re: Texas Incorporation
Posted: Sat Jan 30, 2010 10:50 am
by mhutch69
In case no one has mentioned it, in order to incorporate in the State of Texas, you must have ONE RESIDENT officer.
Otherwise, you can not create a Texas Corporation.
This was the law and I believe it still is. You will also be required to have the ONE resident officer be a Local Recording Agent (LRA) in the State of Texas if incorporating as an insurance agency/MGA, etc.
good luck.
Re: New Broker; Business out of State
Posted: Mon Feb 01, 2010 9:14 am
by pita3333
MHutch:
That is very likely correct info if they were seeking a "resident" license, however not correct if seeking "non-resident" license.