Indiana State Life and Health Insurance Practice Exam

In Indiana, a producer who is licensed here but resides in Michigan is considered what type of producer?

1. Nonresident

2. Foreign

3. Alien

4. Reciprocal

The correct answer is: Nonresident

A producer who is licensed in Indiana but resides in Michigan is considered a nonresident producer. This designation applies to individuals or entities that hold a valid insurance producer license in a state where they do not reside. It is essential for nonresident producers to comply with the regulations and requirements of the state where they are licensed, which, in this scenario, is Indiana. The term "foreign" typically refers to an insurance company that is incorporated in one state but operates in another. "Alien" describes an insurance company that is incorporated outside the United States and conducts business in the U.S. A "reciprocal" is a different legal structure involving groups of individuals or entities that agree to provide insurance for one another. Thus, the designation of "nonresident" accurately reflects the licensing and residency status of the producer in question, aligning with the definitions established in the insurance regulatory framework.