Hawaii does not require a non-resident agent to secure approval for a newly written policy from a Hawaii resident agent. Nevada, however, does have such a law. The Ninth Circuit recently struck down Nevada’s countersignature law as a violation of the Privileges and Immunities Clause of Article IV. See Council of Insurance Brokers v. Molasky-Arman, No. 04-17271 (9th Cir. April 10, 2008).
Nevada’s countersignature law provided that no authorized insurer could write or renew a policy on persons, property or risks in Nevada except through a licensed agent residing in Nevada. The statute further required that the countersigning agent be paid a commission of at least five percent of any resulting premium. The District Court found the statute was unconstitutional.
The Ninth Circuit affirmed, determining that the Nevada statute deprived nonresident licensed brokers and agents of the opportunity to conduct business on the same terms as resident agents and brokers. Therefore, the provision was unconstitutional under the Privileges and Immunities Clause.
Residents and nonresidents alike may sell or negotiate insurance in Hawaii if they are licensed. Haw. Rev. Stat. §431:9A-103 (a). Nonresidents may secure a nonresident license so long as they are licensed and in good standing in their home state, and submit a proper application. Haw. Rev. Stat. §431:9A-108.
