What type of license is issued to producers selling insurance outside their residence state?

The correct option is the non-resident license. This type of license is specifically designed for insurance producers who wish to sell insurance products in states where they do not have residency. Each state in the U.S. requires insurance producers to be licensed within that state in order to sell insurance to its residents.

The non-resident license allows producers to operate legally in states outside their home state, without needing to establish residency or meet the specific requirements of that state’s insurance regulations. It facilitates the ability for agents and brokers to expand their business across state lines, offering more flexibility and opportunities to serve clients in different locations.

In contrast, a resident license is issued to producers who are based in and live in the state where they are selling insurance. An agency license pertains to the establishment under which producers work but does not directly address an individual's ability to sell insurance across state lines. There is no specific 'national license' for insurance producers; licensing is delegated to individual states which means recognition of non-resident licenses is done at the state level rather than nationally.