Letter of Clearance

A letter of clearance is issued to a recipient, giving them the authority to proceed. Clearance letters can be applied to many scenarios, though are often used when licenses are involved.


For example if a licensed professional (such as an insurance broker) moves their operation to a different state, they are required to obtain a letter of clearance to authorize them to continue business. Likewise a previous holder of a driver’s license (or sometimes a current holder) in one state, who is applying for a license in another state, will need a clearance letter from the original DMV to help process the new application.


Similarly healthcare professionals may write a letter of clearance assessing whether a mutual patient is fit for an operation or procedure.


A letter of clearance may also be sent to an employee who is leaving a company, instructing them to fulfil certain obligations and return company property. The employee will often have to get this signed by various departments, certifying that they allowed to leave.


A lesser known type of clearance letter may be issued by a union confirming the status of a contractor. Though it has no legal basis, this gives you clearance (or at least the peace of mind) to go ahead and hire them. For example you might want to request a letter of clearance stating that the contractor is up to date on all their union dues and workers compensation issues. This is just another way to make sure that they are doing everything within regulations and are a responsible member of the business community.

Sample Letters

Letter of Clearance for Union Work Sample

Ty J. May

4471 Kimberly Way
Grand Rapids, MI 49503


Dear Mr. May,

We are just responding to your request for a letter of clearance regarding Clearwater Contracting, We are pleased that you chose to hire a local contractor to complete the work on your house.


Our records state that they are up to date on all their union issues, and workers compensation has all been paid. They are an upstanding member of the local business community, and we have no issues with them at the current time. There have not been any reported issues with Clearwater Contracting in the past either.


Thank you for your concern.



Local 501 Union

Letter of Clearance from Previous Employer Sample

Dear Lamar Watson, Staff Coder, Buzzard Games,

All employees who have handed in their notice are expected to return to the office and the departments they work for, to tie up loose ends before officially leaving the company. You are hereby instructed to bring this letter to the departments noted below so they can verify that you have met your obligations and have returned all company property.


Departments may also wish to have an exit interview, evaluating your time with the company. This will have no affect on your departure or future employment and is used for internal purposes only.


It is important that you obtain this clearance so we can issue your final salary.


Department Name:

Coding: Sign Here

Creative: Sign Here

Marketing: Sign Here


Thank you for your service over the past 5 years and we wish you all the best in your future endeavours.



M. Smite

Chief Coder

Letter of Clearance DMV Sample

Dear Mr. Perham,

A search of our database confirms that you have met state requirements to apply for a driver’s license in Texas. Our records show that you had valid status from February 06, 1999, to June 12, 2009, the date which your license expired.


We also confirm that you had had no tickets or convictions during this time period.


This letter has been issued to you for your personal records, and a copy has been passed to your current DMV.




Derrick Johnson

Kansas Department of Public Safety, Driver License Division

Letter of Clearance for Insurance Sample

To whom it may concern,

This letter is to confirm that Mr. R. McIntosh has surrendered his insurance licence to the California Department of Insurance and is free to apply for a new license in the state of New York. Please find enclosed a copy of the original license.



Austin Adams

California Department of Insurance

Letter of Clearance for Surgery Sample

Regarding Patient: Mr K. Bray


Dear Dr. Youngblood,

Thank you for informing me that our mutual patient is scheduled for root canal surgery. Having assessed the procedures you’ve outlined using the patient’s medical history, I am confident that you can go ahead without any issues.



Dr. Michaels

Gemcore Health Group