Staying on top of and complying with many different states regulations cost life brokerage agencies an average of $12,600 per year and 347 hours of staff time, according to a recent survey.
Around 84% of life brokers surveyed by the National Association of Independent Life Brokerage Agencies, Fairfax, Va., think the variation of state-imposed rules is also losing potential sales, either by their own business or that of their insurance sellers.
NAILBA member agencies are licensed on average in 31 states, according to the study.
Agencies are also often required to pay additional annual fee or pay for additional services, such as legal fees, NAILBA reports.
“To hold a nonresident business license in several states, the agency is required to register with the Secretary of State Office or other state agency,” stated one survey respondent. “This not only entails paying the required fees by the [agency], but if you do not have a physical office in that state, you must also pay for the corporate representation in that state (in addition to the insurance department).”
The survey went out to 347 NAILBA member agencies.