What Is License Lapse? Definition

Why it matters

Lapses can also cancel carrier appointments. Many states allow reinstatement within a grace window for extra fees, and some require a new application or exam after that. Commission on sales made while unlicensed may be denied, and the state may fine the agent. Renew early and keep contact details current so state notices arrive.

Source: naic.org

Where we use this term

How to get a multi-state life insurance license: resident first, then nonresident

Related terms

License Renewal: License renewal is the periodic step of paying fees and meeting requirements, such as continuing education, to keep a producer license active. Each state sets its own cycle.
Continuing Education (CE): Continuing education, or CE, is required coursework that licensed agents complete each renewal period to keep their licenses. Hours and topics are set by each state.
Carrier Appointment: A carrier appointment is the approval an insurance company gives an agent to sell its policies in specific states. The carrier registers the agent with each state's insurance department.
Producer License: A producer license is a state-issued credential that lets a person sell, solicit, or negotiate insurance. States issue it by line of authority, such as life, and the holder must follow that state's insurance laws.
State Department of Insurance (DOI): A state Department of Insurance is the state agency that licenses agents, reviews insurance products, and handles consumer complaints. Names vary, such as Division of Insurance or Department of Financial Services.

All 241 terms

Why it matters

Where we use this term

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