Licensing Requirements To Become An Insurance Agent And Sell Insurance
8/9/2019
What Licenses Are Required To Sell InsuranceInsurance agents, also known as “producers” or “brokers”, fill a vital role in communities both big and small throughout the United States. Many people get insurance to protect themselves, their loved ones, and their property or business interests, either as a legal requirement or to protect themselves in the event that disaster strikes. While insurance isn’t intended for anyone to profit if something bad happens, it does aim to keep a beneficiary “whole” or financially stable during and after times when their financial well-being is threatened by an event.
States enforce strict requirements that must be met before a person can become a licensed producer. These requirements vary by state. They also differ based on the line of authority or type of insurance you plan to sell.
How To Get My Insurance License: State RequirementsWhile every state has its own criteria for becoming a licensed insurance agent, there are some similarities. In many cases, you’ll have to complete a course to prepare to take a state exam in your chosen line of authority. Even if taking an online or live course isn’t mandated, it’s still wise to take a self-study course to prepare for a state exam. Formal courses vary in length, ranging from six to 90 hours depending on the state and type of insurance.
Before you take a state exam, you may have to earn a certificate to prove that you completed the training necessary to sit for the state exam. Once you get your certificate, you’ll be able to schedule a time to take the state exam, although some license applicants might need the sponsorship of an employer.
Even though there are no mandated educational requirements to become an insurance producer beyond the necessary prep coursework, you do have to be at least 18 years old to secure a license to work as an insurance agent. To keep your license after you earn it, you will need to satisfy continuing education requirements on a regular basis to avoid having to pay a fine to reinstate your license or having to take the state exam over again.
You will also need to undergo a background check to secure a state insurance license. Background checks vary by state, but they often include fingerprinting and running your prints through several law enforcement databases.
How To Get An Insurance License: Lines Of AuthorityYou need to earn a license in every state in which you sell insurance, either by taking an exam or through reciprocation, and you must also secure a license for each line of authority in which you plan to sell policies. Here are some of the types of insurance you may want to get a license to sell:
- Life and health
- Long-term care
- Disability
- Liability
- Property and casualty
- Personal lines insurance
- Workers′ compensation
If you choose to sell insurance that has a variable component, meaning an investment element, you will need to earn a securities license in addition to the relevant insurance license. Cash-value life insurance is an example of a type of insurance for which you’ll need a securities license.
How To Get A License To Become An Insurance Agent: Agent Broker Training CenterAgent Broker Training Center makes it easy to get the training you need to sit for a state licensing exam. We offer online webinars, in-person classes, self-study courses, practice exams and more.
Purchase study materials or enroll in one of our courses online to prepare to earn a state insurance license now.
