You worked hard to earn your insurance license, but things changed and now you don't want it anymore. You can surrender your insurance license at any time for any reason, but there are consequences for doing so. Before you relinquish your license, be aware of the restrictions that the state will place on you as a result.
Surrender by State
Insurance agents and brokers must be licensed in order to do business in every state. Each state issues its own licenses, so you may want to surrender your license in only one state but keep your licenses in others. Generally, your license status in one state does not affect your status in others. The consequences for surrendering your license will be limited to the states where the surrender takes place; they will not affect states where your license remains active.
Barred From Transacting Insurance
In whatever states you choose to surrender your license, you will not be allowed to transact insurance once the license is gone. The definition for transacting insurance is fairly uniform in every state. Transacting insurance means, broadly, doing anything related to the sale or service of an insurance policy. Specifically, it means collecting premiums, receiving commissions, completing applications, proposing, issuing or delivering policies, advertising insurance services or acting as an agent or broker in any way.
Lose All Appointments
Even after you receive an insurance license, you must be appointed by one or more insurance companies in order to sell or solicit their products. This is an agreement between you and the company that you will sell policies according to the company's procedures and receive commissions as a result. When you surrender your license, all appointments in the state are automatically cancelled. Therefore, you no longer work with or represent any insurer and will not receive any payments.
Prevented from Reinstatement
Depending on the laws in the state where you surrender your license, you may be prohibited from reinstating your license or applying for a new one for a certain period. In Arizona, for example, you must wait at least one year from the date of the surrender before you can reapply. If the state chooses, it can extend this period at its discretion. Therefore, be sure about your decision because you may not be able to take it back.
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