What are State-Licensed Insurance Producers?
State-Licensed Insurance Producers refer to individuals or entities authorized by a state to sell, solicit, or negotiate insurance policies. Under the Corporate Transparency Act (CTA), these producers are exempt from Beneficial Ownership Information (BOI) reporting requirements if they meet certain criteria, such as holding a valid state-issued license and operating from a physical office located within the United States.
The exemption exists because state-licensed insurance producers are already subject to regulatory oversight, reducing the need for duplicative reporting. To qualify for this exemption, the insurance producer must have an active state license and must be physically conducting business from a U.S.-based office. This means that while these producers must still comply with other federal and state regulations, they are relieved of the obligation to submit BOI reports to FinCEN.
This exemption helps streamline compliance requirements for businesses in the insurance industry, particularly those already under stringent state regulatory frameworks.
