Final answer:
An out-of-state producer should obtain a non-resident insurance license to sell insurance in a new state. This ensures compliance with the state's specific regulations and standards as the insurance industry is regulated at the state level in the U.S.
Step-by-step explanation:
An out-of-state producer looking to start selling insurance in a different state should obtain a non-resident insurance license for that particular state. Each state has its own insurance regulations and licensing requirements, which are overseen by the state's insurance department. Since the insurance industry is regulated at the state level in the U.S., obtaining the proper license ensures that the out-of-state producer complies with the specific legal and professional standards of the state in question.
The National Association of Insurance Commissioners (NAIC) exists to help state insurance regulators in exchanging information and strategies, which further emphasizes the need for state-specific licensing. So, to sell insurance in another state, one must meet the particular state's licensing requirements, which might include educational courses, examinations, and application procedures to ensure the producer is qualified and knowledgeable about the state-specific insurance laws and practices.