Insured business is domiciled in Pennsylvania and has recently hired an outside sales person in Georgia. Insured would like to extend liability from the CGL to the outside salesperson's home, from which he operates. However, agent and insurance company are not licensed in Georgia. Can an insurance company apply CG 21 44 to a location in a state they're not licensed in? Additionally, must the agent also be licensed in that state?

Pennsylvania Subscriber

In this instance the insurance company can apply CG 21 44 to the outside salesperson's home in Georgia, even though the agent and insurance company are not licensed in Georgia, but rather in Pennsylvania, because the insured's principal place of business and the contract of insurance insures risks are located in that state. This is so due to an exception in Georgia's licensing laws for nonresidents.

Ga. Code Ann. §33-23-4, concerning multi-state exposures, states that a license is not required for a nonresident insurance producer who sells, solicits, or negotiates a contract of insurance for commercial property and casualty coverage when risks that are to be insured under that contract are located in more than one state. This exception applies only if the nonresident is licensed to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state.

Thus, an agent licensed in Pennsylvania can extend liability from the Pennsylvania CGL to the salesperson's home in Georgia.