Who is required to have an active producer license to keep their broker's license?

To maintain a broker's license in South Carolina, a resident broker is required to have an active producer license. This is because the role of a broker often involves selling or facilitating the sale of insurance products, which necessitates compliance with state regulations and licensing requirements for producers. By requiring resident brokers to hold an active producer license, the state ensures that these professionals have the necessary knowledge, training, and ethical standards to operate effectively within the insurance market.

In contrast, non-resident brokers may not be subjected to the same licensing requirements in the same way, depending on their jurisdiction. Independent insurance agents, while they must also be licensed to sell insurance, serve a different role and are not necessarily required to maintain a broker's license. Customer service representatives, on the other hand, typically do not engage in the sale of insurance products and therefore do not need a broker or producer license to perform their duties. This distinction highlights why an active producer license is essential specifically for resident brokers to operate legally within the state.