What is a producer licensed in a state where they do not reside called?

A producer licensed in a state where they do not reside is referred to as a nonresident producer. This designation is crucial because it recognizes the ability of individuals to operate in multiple states while maintaining their primary residence in another. Nonresident producers must adhere to the licensing requirements of each state in which they seek to conduct business, ensuring compliance with local regulations and laws.

The nonresident producer status allows individuals to expand their business opportunities beyond their home state and is especially beneficial for producers who live near state borders or who have clients in different regions. They may engage in selling, soliciting, or negotiating insurance policies in the different state where they hold a license while primarily residing elsewhere. This arrangement promotes flexibility and broader market reach for insurance professionals, facilitating growth and customer service across state lines.