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Commercial Line Multi-State Exemption
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"A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that that person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state;"
A working example that's complicated for monopolistic states (Ohio, North Dakota, Washington, and Wyoming) is Workers Compensation.
If an agency does not have a license in any of the Workers Compensation impacted states, then it would not meet the "and the contract of insurance insures risks located in that state;" If the agency were licensed in Pennsylvania, and the insured had Workers Compensation needs in Pennsylvania and other states, then the additional unlicensed states could still be supported.
Without the monopolistic nature of Workers Compensation, Property and Commercial Auto policies, with extensive schedules, have much more flexibility.
That said, not all states have adopted the language.
A working example that's complicated for monopolistic states (Ohio, North Dakota, Washington, and Wyoming) is Workers Compensation.
If an agency does not have a license in any of the Workers Compensation impacted states, then it would not meet the "and the contract of insurance insures risks located in that state;" If the agency were licensed in Pennsylvania, and the insured had Workers Compensation needs in Pennsylvania and other states, then the additional unlicensed states could still be supported.
Without the monopolistic nature of Workers Compensation, Property and Commercial Auto policies, with extensive schedules, have much more flexibility.
That said, not all states have adopted the language.
| State | Adopted Status & DOI Source |
| Alabama | Yes |
| Alaska | Yes |
| Arizona | Yes |
| Arkansas | Yes |
| Colorado | Yes |
| Connecticut | Yes |
| Delaware | Yes |
| Georgia | Yes |
| Hawaii | Yes |
| Idaho | Yes |
| Illinois | Yes |
| Indiana | Yes |
| Iowa | Yes |
| Kansas | Yes |
| Kentucky | Yes |
| Louisiana | Yes |
| Maine | Yes |
| Maryland | Yes |
| Massachusetts | Yes |
| Michigan | Yes |
| Minnesota | Yes |
| Mississippi | Yes |
| Missouri | Yes |
| Montana | Yes |
| Nebraska | Yes |
| New Hampshire | Yes |
| New Jersey | Yes |
| New Mexico | Yes |
| New York | Yes |
| North Carolina | Yes |
| North Dakota | Yes |
| Ohio | Yes |
| Oklahoma | Yes |
| Oregon | Yes |
| Pennsylvania | Yes |
| Rhode Island | Yes |
| South Carolina | Yes |
| South Dakota | Yes |
| Tennessee | Yes |
| Utah | Yes |
| Vermont | Yes |
| Virginia | Yes |
| Washington | Yes |
| West Virginia | Yes |
| Wisconsin | Yes |
| Wyoming | Yes |
| Washington | Yes |
| State | Adopted Status & DOI Source |
| California | No |
| Florida | No |
| Nevada | No |
| Texas | No |