What type of agreement allows a non-resident licensed producer to obtain a Utah license without taking the Utah insurance exam?

The correct answer involves a reciprocal agreement, which is a type of arrangement that allows individuals licensed in one state to obtain a license in another state without having to retake the licensing exam, provided certain conditions are met.

In the context of insurance, when two states have a reciprocal agreement, it means they recognize each other’s licensing standards and qualifications. This arrangement facilitates the practice of producers across state lines without imposing redundant examinations on professionals who are already qualified. For the non-resident licensed producer, this means they can seamlessly operate in Utah if the state recognizes their credentials from another state with which it has this agreement.

Reciprocal agreements are designed to promote business and make it easier for licensed individuals to conduct their operations across state borders. Other types of agreements, such as mutual, interstate, or cooperative agreements, may not specifically address the licensing process in the context of insurance producers, making them less relevant to this specific scenario.