How to Get Your Insurance License

Looking to get an insurance license? Whether you're starting a new career as an insurance agent or adding to your professional skills, this guide breaks down exactly how to get an insurance license. 

We'll walk you through the different types of licenses, requirements, and steps you need to take to become a licensed insurance agent.

Types of Insurance Licenses

Before starting the licensing process, you need to understand which types of insurance you want to sell. Your choice will determine which licenses you need. 

The two main types of licenses new agents get are the Property and Casualty License and the Life and Health license. 

Often, agents start with one, then come back to get the other. Folks with both license types are more likely to find a job within an insurance agency quickly.

Note
Property & Casualty and Life & Health licenses are insurance producer licenses. A producer license allows you to act as an insurance agent - to market and sell insurance products. If you’re looking for an Insurance Adjuster License, click here.

Property and Casualty Insurance License (P&C)

A Property and Casualty license is the most common license for those looking to work in an insurance agency.

This license allows you to sell insurance policies and products relating to: 

• Home insurance
• Auto insurance
• Business insurance
• Renter’s insurance
• Workers compensation insurance
• Other types of property or liability coverage

It’s worth noting that some states offer what’s called a Personal Lines license. This generally covers the same types of policies, but limits you to working with only individuals, not businesses. 

We recommend skipping personal lines and focusing on the P&C license instead.

Definitions

Learn more about the Property and Casualty License.

Life and Health Insurance License (L&H)

A Life and Health license is also common for new agents, but is sometimes focused on positions outside of the standard insurance agency.

Other types of jobs that require one or both of these licenses include:

• Medicare specialist
• Financial advisor (when selling insurance products)
• Employee benefits specialist
• Long-term care specialist
• Group benefits administrator
• Healthcare insurance navigator
• Bank insurance specialist

Unlike the P&C license, people sometimes get their Life Insurance license and Health Insurance license separately. 

P&C insurance policies generally include coverage for both property and casualty items, whereas life insurance products and health insurance products often don’t have any overlap. 

This allows people to operate in roles specifically requiring a Life Insurance license -or- a Health Insurance license.

Definitions

Learn more about the Life and Health License.

Steps to Get Your Insurance License

The path to becoming a licensed insurance agent follows a clear progression. While specific requirements and order vary by state, the general steps remain fairly consistent.

Insurance License Requirements

Before starting the process, make sure you meet these basic requirements:

• Be at least 18 years old
• Have a valid Social Security number
• Be a legal resident of the US, and the state where you're seeking your first license (you can get additional state’s licenses after getting your home state’s license)
• Be able to pass a background check (more info below)

Pre-License Education and Exam Prep Course

Taking an insurance exam prep course is the first step to getting your insurance license. These courses have one goal - to prepare you for your insurance exam.

Some states require a certain amount of pre-licensing credit-hours before sitting for the exam. But even in states where it’s not required, taking an insurance course is the only way to get the information you need to pass the exam.

Insurance courses are usually taken online as recorded video classes, taken at your own pace. Depending on how much time you’re able to dedicate to your course, completing it usually takes between 1-3 weeks. 

A good course will provide you not only with the industry-specific knowledge you need to pass the state exam, but also practice exams to test your understanding of the material.

Insurance Exam

All states require passing an insurance exam before getting a license.

These exams are: 

• Between $29 - $105 per attempt
• Between 50-200 questions
• 1-3 hour time limit
• 70% or higher passing grade (differs slightly from state to state)
• Closed-book
• Multiple choice
• Proctored (usually at an in-person testing facility)

The questions on the exam are different in each state and for each line of insurance, but they are intended to test your knowledge of:

• Contract basics
• Insurance products and concepts
• Industry terms
• State laws, rules, and regulations
• Ethics and proper practices

Note
It’s important to understand that this test can’t be passable just using common sense or general reasoning. Taking a proper insurance exam prep course is the only viable way to get the specific knowledge needed to pass.

To schedule a time to take your exam, you’ll work with the state’s exam provider - usually either Pearson Vue or PSI.

License Application

To get an insurance license, you’ll need to submit an application to your state’s Department of Insurance.

The fees of the license application vary widely depending on the state and line(s) you’re applying for - ranging from $10 - $185.

The application process is handled online, usually by a third-party provider. NIPR and Sircon are the two most widely used.

Depending on the state, applications take from 2 days to 3 weeks to be approved or denied.

Background Check

Along with the application, you’ll undergo a background check, which usually includes fingerprinting. 

Many states use electronic fingerprinting systems, making the process quick and clean. Fingerprinting fees typically range from $35 to $75, and results are sent directly to the state insurance department.

Why Do State Insurance Departments Run Background Checks?

State insurance departments conduct background checks to protect consumers from fraud and dishonest practices. They primarily look for felony convictions, financial crimes like theft or fraud, and any previous insurance license suspensions or revocations.

Minor offenses or misdemeanors usually won't stop you from getting a license, but failing to disclose them on your application can result in denial.

If you think you may have an issue with passing the background check, we recommend contacting your state’s Department of Insurance Licensing Department before starting your licensing journey.

After Getting Your License

Success! Your license approval marks the beginning of your insurance career, but there are important considerations for maintaining and expanding your new credentials.

Get an Insurance Job

Once you’ve gotten your license, you’re now eligible to sell insurance! This means you can put the license to work and start making all those commissions you’ve been dreaming about.

The best place to find open positions near you is StateRequirement Jobs. This is an insurance-focused job board that’s 100% free for job seekers.

Continuing Education Requirements

Your insurance education doesn't end with licensing. States require ongoing education to ensure agents stay current with industry changes and maintain ethical business practices.

Most states mandate 20 to 24 hours of continuing education every two years.

License Renewal

Insurance licenses typically expire every two years. The renewal process involves completing required continuing education, submitting a renewal application, and paying the renewal fee. 

Mark your renewal dates on your calendar and start the process early to avoid license expiration, which would require you to stop selling insurance until reinstatement.

Getting Licensed in Other States

Many insurance agents find opportunities to expand their business across state lines.

Some states offer licensing reciprocity, which means you can obtain additional state licenses without retaking pre-licensing courses or exams. You'll still need to submit applications and pay fees for each state, but the process is generally simpler than your initial licensing.

Insurance License FAQ