If an insurance agent leaves the state to take domicile elsewhere, what must they do with their license?

When an insurance agent leaves the state to establish residency elsewhere, the proper course of action regarding their license is to return it within a specified timeframe, usually 10 days. This requirement is in place to ensure that the licensing authority is updated about the agent’s current status and that they are not operating under an outdated or invalid license in a different jurisdiction.

Returning the license is essential because each state has its own licensing requirements and regulations; therefore, the agent would need to apply for a new license in the state where they intend to reside and work. This process helps maintain the integrity of the licensing system and ensures that agents are compliant with the laws of the state they are moving to.

Continuing to operate under the old license is not permissible, as it could lead to legal complications and regulatory issues. Transmitting it to the new state may be part of the process of applying for a new license, but returning the license is the more immediate obligation. Renewing the license immediately would not be applicable since the agent is no longer residing in that state and would need to obtain a license relevant to their new domicile.