Maryland Life and Health Insurance License Practice Exam

What is the term for a producer who is licensed in Maryland but resides in another state?

1. Domestic producer

2. Nonresident producer

3. Foreign producer

4. Resident producer

The correct answer is: Nonresident producer

The term that describes a producer who holds a license in Maryland while residing in another state is "nonresident producer." This designation applies to individuals who are authorized to conduct insurance business in a state where they do not reside. Nonresident producers must comply with the regulations of the state where they are licensed, such as completing the necessary education requirements and paying applicable fees. This terminology is important within the insurance industry as it distinguishes between producers based on their residency status in relation to their licensing. In contrast, domestic producers are those who both reside and are licensed in the same state, while resident producers are those who are licensed and live in the state where they are operating. The term "foreign producer" typically pertains to insurance companies that are incorporated in one state but are operating in another, not individual producers. Understanding these classifications helps in comprehending the landscape of insurance regulation and compliance in different jurisdictions.