Insurance agents ambitious to grow their businesses while maintaining lifetime customer relationships would find new opportunities under an OFC. Rather than having to secure new licensing in every state in which they want to operate, agents could simply seek a federal license and follow their customers anywhere in the country. Good insurance agents are trusted financial advisors and they should be able to serve their customers even after their customers move across state lines. More flexible licensing could also give agents new products to sell.
Some OFC opponents point out that only a small percentage of agents - about one in five - currently work in more than one state. This is true but misleading. The current regulatory environment makes it very difficult for agents to work across state lines. Each additional state in which an agent wishes to work requires a new licensing exam, fees, and background checks. Under an OFC, more agents would be able to follow their customers and maintain operations in more than one state. While it is true that insurance agents who want to keep all of their customers in a small, confined geographic area would likely have a harder time competing under an OFC, many agents who do not currently work across state lines would begin to do so.