Licensing Hot States Requirements
Licensing Hot States Requirements
Section titled “Licensing Hot States Requirements”Overview
Section titled “Overview”GFI has identified specific “Hot States” with unique licensing and appointment requirements that directly impact upline override commission eligibility. Understanding these requirements is essential for compliance and uninterrupted compensation.
State Databases & Resources
Section titled “State Databases & Resources”Florida State Database
Virginia State Database
West Virginia State Database
FL/VA/WV Masterlist
Database (NEW)
License + Appointment Required States
Section titled “License + Appointment Required States”These 3 states require both a valid insurance license AND active carrier appointment for a writing agent and an upline to receive override commissions:
- Florida (FL)
- Virginia (VA)
- West Virginia (WV)
Why It Matters
Section titled “Why It Matters”In Florida, Virginia, and West Virginia, uplines must have both a license and active appointment with the carrier to receive override commissions from business written in these states.
License Only Required States
Section titled “License Only Required States”In these 15 jurisdictions, an upline only needs to hold a valid insurance license (no appointment with the carrier needed) to earn override commissions:
- Alabama (AL)
- Georgia (GA)
- Kentucky (KY)
- Louisiana (LA)
- Massachusetts (MA)
- Mississippi (MS)
- Montana (MT)
- New Mexico (NM)
- North Carolina (NC)
- Pennsylvania (PA)
- Puerto Rico (PR)
- South Carolina (SC)
- South Dakota (SD)
- Utah (UT)
- Wisconsin (WI)
Why It Matters
Section titled “Why It Matters”In these states, a valid license is sufficient—no appointment is needed for upline override eligibility.
Compliance Best Practices
Section titled “Compliance Best Practices”Essential Tips to Remember:
Section titled “Essential Tips to Remember:”-
Licensing Tracker
- Maintain a state-by-state status tracker for each agent and upline
- Flag upcoming license expirations at 60/30 days before lapse
- Flag missing appointments in FL, VA, and WV
-
Appointment Monitoring
- Review carrier portals monthly for appointment confirmations
- Verify appointments are active before writing business in FL, VA, WV
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Pre-Business Verification
- Confirm your license and appointment before writing business
- The writing date is key—without proper licensing and appointments, you will miss out on commissions and commission overrides
-
Continuing Education (CE)
- Monitor CE requirements for each licensed state
- Agents are responsible for maintaining their insurance licenses, including CE requirements
- Monitor the NAIC Producer Licensing Model Act for updates
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Stay Informed
- Watch for GFI Compliance updates in the GFI Compliance Newsletter
- Follow these guidelines for uninterrupted overrides and seamless business growth
Critical Compliance Points:
Section titled “Critical Compliance Points:”- Disciplinary Actions: Agents must inform GFI of any license suspension, revocation, or disciplinary action
- Federal Law 18 USC 1033(e)(1)(A) and (B): Prohibits appointing individuals convicted of felonies involving dishonesty or breach of trust without specific written consent from insurance regulatory officials and GFI
- Solicitation State Rule: Agents must be licensed and appointed in the solicitation state (where the client signs the application)
Quick Reference
Section titled “Quick Reference”| Requirement Type | States | Upline Override Eligibility |
|---|---|---|
| License + Appointment | FL, VA, WV | Must have both license AND active appointment |
| License Only | AL, GA, KY, LA, MA, MS, MT, NM, NC, PA, PR, SC, SD, UT, WI | License is sufficient—no appointment needed |
Important: If you’re mapping out where agents submit business or ensuring uplines are compliant, this breakdown allows you to align licensing strategy with override eligibility requirements directly.