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Are you planning to get it renewed? I'm not sure why they'd care that it lapsed as long as you get it renewed.
Not in this job market. From what I am seeing, insurance agencies are short-staffed and desperate for help. I would just start applying and see what kind of feedback you get.
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I’ve seen people go out of insurance and come back to it. Have you been keeping up with getting your agency licensed renewed and taking CE classes?