Who is considered a nonresident agent?

A nonresident agent is defined as an individual who resides in a state other than the one in which they are conducting business, but is authorized to operate within that particular state. This definition clearly aligns with the provided answer, which states that the agent resides and is licensed in another state while being authorized to transact insurance in the state in question.

This distinction is crucial because nonresident agents must fulfill specific requirements to be licensed in the states where they operate, ensuring that they comply with local laws while being able to offer their services across state lines. This can include passing exams and submitting applications to the insurance department of the state where they wish to operate.

The other options do not accurately capture the definition of a nonresident agent. An agent who simply lives in another state but is licensed in the local state lacks the proper authorization to operate as a nonresident agent. An agent who only sells policies online does not pertain to residency or licensing status and could be either licensed in the state where they reside or operating as a nonresident agent. Finally, an agent who works in multiple states without appropriate licensing would not be in compliance with state regulations and thus would not be recognized as a valid agent in those states.