Claire-ification

Are you a member with a question? Contact IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR to find the answer at 717-918-9202 or ClaireP@IABforME.com.

QUESTION:

Can I license a remote worker living abroad through a vendor?

ANSWER:

The short answer is No — and here’s why.

BACKGROUND: REMOTE WORK AND LICENSING

Since the pandemic, remote work has become common. Many agency owners now use remote workers to expand their talent pool or retain valued staff who relocate. For example, a licensed producer living in Nebraska can work for an agency based in Delaware (or any other state) by obtaining a non-resident license in the state where they will be selling, soliciting, or negotiating insurance. This setup is straightforward.

DOMESTIC VS. INTERNATIONAL WORKERS

However, the rules change when we talk about international remote workers. This FAQ addresses a key distinction: Can someone living abroad be licensed in the U.S. to sell insurance? And does citizenship play a role?

U.S. PRODUCER LICENSING REQUIREMENTS

While licensing rules can vary slightly by state, these general requirements apply across the board:

▲ U.S. citizens can apply for a license in any state.

▲ Non-U.S. citizens must have valid work authorization in the U.S.

• This typically means providing proof of work eligibility, such as a Green Card (Form I-551) or a valid I-9 form.

WHAT IF I USE A VIRTUAL ASSISTANT OVERSEAS?

If you contract with a third-party vendor to hire a virtual assistant located outside the U.S. — for example, someone working from the Philippines — they are not eligible to become a licensed producer.

That’s because they do not have authorization to work in the U.S., and that’s a fundamental requirement for licensing. Even if some state statutes appear vague on this point, enforcement is a practical concern. Regulators must be able to hold licensed producers accountable, which is much easier when the individual is physically located in the country.

STATE-SPECIFIC EXAMPLE: PENNSYLVANIA

Some states go a step further. For instance, Pennsylvania’s Producer Licensing Regulation requires that an individual applying for a resident license must either:

▲ Live in Pennsylvania, or

▲ Physically work in Pennsylvania

This means that if your employee lives in another state, they must get a resident license in that state and a non-resident license in Pennsylvania to work with your PA agency.

BOTTOM LINE

▲ U.S. citizenship is not required to obtain a producer license.

▲ However, authorization to work in the U.S. is required.

▲ International virtual staff without U.S. work authorization cannot become licensed producers.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.