What is the condition under which a non-resident can sell insurance for commercial property and casualty risks?

A non-resident can sell insurance for commercial property and casualty risks if they are licensed in the state where the insured maintains its principal place of business. This requirement ensures that the non-resident adjuster is knowledgeable about the regulations and standards applicable in that state, which is essential for effective risk assessment and claims management.

This licensing provision helps maintain a level of professionalism and accountability in the insurance market, allowing insurers and policyholders to have confidence that agents selling insurance understand the specific laws, market conditions, and underwriting practices pertinent to that jurisdiction. Licensing in the home state of the insured reflects an understanding of local regulations that might influence the coverage and claims process.

This aspect reinforces the importance of state regulations in the insurance industry, which vary significantly from state to state, affecting everything from policy terms to coverage limits. Being licensed in the state where the insured operates ensures compliance with local statutes and enhances consumer protection.