Who is considered a nonresident agent?

• A. An agent who resides and is licensed in another state but is authorized to transact insurance in this state
• B. A resident agent
• C. A broker who handles only out-of-state clients
• D. A public adjuster

Answer: (A)

Nonresident agent describes someone who lives in another state, is licensed there, and is authorized to transact insurance in this state. The key idea is that residency is outside this state, and licensing follows in that home state, with permission to operate here through appropriate licensing or reciprocity. This distinguishes them from a resident agent, who lives in this state and is licensed here. The other options describe a role or situation that doesn’t define nonresident status (a broker serving only out-of-state clients could still be a resident or nonresident depending on licensing, and a public adjuster is a claims professional, not an insurance agent). So the correct understanding is someone who resides and is licensed in another state but is authorized to transact insurance in this state.