How to Get an Insurance License

Posted by Matt Williams on Monday, February 24, 2014 Under: Licensing
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How to Get an Insurance License

Obtaining an insurance license in your state (or other states in which you have interest in doing business) is not difficult, if you know what to expect, and can fulfill the requirements.

It is important to understand that passing the test and "being licensed" are not the same thing; and that the process is slightly different from state to state. The following should help increase your knowledge in this regard.

Job Specifics and Skill set(s) Required

Insurance sales agents, sometimes referred to as “producers” represent and offer clients one or more types of insurance, such as, life, health, disability, auto, homeowner's etc.

Licensed property and casualty insurance agents handle policies that protect individuals and businesses from financial loss resulting from automobile accidents, fire, theft, wind, and other events that can damage or loss to property. In the business arena, property and casualty insurance can also provide workers’ compensation, premise liability coverage, or medical name a few.

Licensed life insurance producers sell policies that pay benefits when an insured policyholder dies. A whole life policy might be offered to provide a cash-value which may be used for retirement income, children college education, or anything the owner of the policy decides. Life insurance agents also sell annuities that can be used to supplemen retirement income.

Licensed Health insurance agents offer health insurance policies that cover the costs of medical care and loss of income due to illness or injury. They also may sell dental insurance, disability insurance, long term care insurance and Medicare supplement policies.

Today, it is increasingly common for agents to be licensed in life & health as well as property & casualty, allowing them to sell all types of insurance.

Additionally in today’s market, an increasing number of insurance sales agents are offering comprehensive financial planning services to their clients. These services include retirement planning, estate planning, and assistance in setting up pension plans for businesses. As a result, many insurance agents are involved in “cross-selling”.  In addition to offering insurance, agents commonly become licensed to sell mutual funds, variable annuities, and other securities.

Licensing and Training Required

Every person in every state involved in the “solicitation, selling, or negotiation of insurance” must have a state-issued license. Licensure requirements vary by state but typically require some insurance-related coursework and the passing of an exam.

Insurance sales agents must obtain a license in the states where they plan to work. Separate licenses are required for agents to sell life & health insurance and property & casualty insurance. The TESTivity course for both life & heath and property & casualty licensure include:

  • Audio reinforced textbook
  • Audio reinforced flashcards
  • Mind Maps
  • Crossword puzzles
  • Downloadable MP# audio course
  • Quizzes and practice exams

Following the completion of training, candidates must take a state licensing examination covering insurance fundamentals and state insurance laws.

In : Licensing 

Tags: insurance license  pass the insurance exam  online insurance school 

About Me

Matt Williams I have obtained the Series 7, 8, 24, 63 and 65 FINRA/NASAA investment licenses, the Life & Health, Property & Casualty and Adjuster insurance licenses. I currently hold the CLU, ChFC, and CFP® professional designations; and am a certified trainer in adult education.