Insurance License Checklist

Everything You Need To Know About Being a Licensed Insurance Professional in the U.S. Insurance Industry 

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If you’re looking to start a career in insurance, you must meet the licensing requirements in your state. This comprehensive guide provides you with all the information you need to know about licensing requirements in the United States. We cover topics like conditions to meet licensing, uniformity requirements and exceptions to licensing as well.  So, whether you’re just starting out in your career or are looking to move to a new state, this guide will have everything you need! 

Requirements for Insurance License– A Checklist

A majority of states are required to meet all five of the following conditions in order to meet the licensing uniformity standards set forth by Gramm Leach Bliley Act (GLBA):

  • Establishing common standards for judging a producer’s moral character, individual qualifications, level of education, training, and work history. These standards must also cover product suitability for potential customers.
  • Adoption of standard requirements for continuing education (CE).
  • Adoption of standardized ethics training requirements with other CE requirements.
  • Adoption of uniform suitability requirements based on financial information submitted by the customer.
  • Removal of nonresident requirements, with the exception of countersignature requirements, that impose any restrictions or conditions due to the location of the producer’s domicile or place of business.

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Exceptions to Licensing 

Types of people and organizations that are exempt from licensing are listed in the table below:

  • An officer, director, or employee of a producer of insurance, provided that the officer, director, or employee does not receive any commission on insurance policies issued or sold to cover risks based in the state or involving operations there.
  • A person who obtains and provides data for, or enrolls people in, group accident and health insurance, group P/C insurance, group annuities, or group, or blanket, life insurance.
  • Trustees of an employee trust plan, officers, directors, or employees of the employer or association. 
  • Those who work for insurance companies or companies that work for insurance companies and are involved in the examination, rating, or classification of risks.
  • A person whose only purpose for being in a state is to advertise without trying to sell insurance there.
  • A non-resident who sells solicits, or negotiates an insurance contract for commercial property and casualty risks with an insured who has risks located in more than one state covered by that contract.
  • A full-time, salaried employee who counsels or advises the employer regarding the employer’s insurance interests.

Frequently Asked Questions

What is the most profitable insurance to sell?

Although there are many different types of insurance (from health insurance to auto insurance), selling life insurance is the most lucrative profession in the insurance industry

How long does it take to get an insurance license in California?

Once they get the necessary paperwork, the Department normally needs 4 weeks to process and issue your insurance license. When your application is accepted, you will get an email with a link to the Department’s website where you can view and print your insurance license. 

How do insurance agents get paid?

A commission is paid to an insurance agent when they sell you a policy. In addition, there are promised benefits that go beyond commission payments for the sales goals they hit. 

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