ALOs & Trainings

Commercial Line Multi-State Exemption

Written by 𝖢𝗅𝒂𝒊𝗋𝖾 | Aug 31, 2026, 9:33:09 PM
"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

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