How to Get an Insurance Licence (Life, Health, and P&C)

Insurance licensing is regulated state-by-state and product-by-product. You cannot sell insurance without a licence in the state where the customer resides, and you must be licensed for the specific type of insurance (life, health, property, casualty, etc.) you're selling.

Most new agents pursue either Life and Health (L&H) or Property and Casualty (P&C) licensing first, based on the type of insurance they plan to sell. Getting both widens product options and income potential.

Lines of authority — what you can sell with each licence

LIFE: Term life, whole life, universal life, variable life (requires additional securities licence), annuities, group life. HEALTH: Major medical (ACA plans), Medicare supplement, Medicare Advantage (requires AHIP certification annually), disability income, long-term care, dental and vision. PROPERTY: Homeowners, auto, commercial property, inland marine. CASUALTY: General liability, workers' compensation, professional liability. PERSONAL LINES: A combined property + casualty licence for consumer-focused agents. SURPLUS LINES: Allows placement with non-admitted carriers — requires additional certification in most states.

Most new agents start with either L&H (for financial services and employee benefits) or Personal Lines P&C (for auto and home insurance). Health insurance agents focused on Medicare need annual AHIP certification in addition to their state health licence.

The pre-licensing course

Every state requires a pre-licensing course before sitting for the exam. Required hours vary: most states require 20–40 hours per line of authority. Courses are available online from providers like Kaplan, ExamFX, and StateRequirement. The course covers insurance fundamentals, state-specific law, ethics, and product specifics. A final course exam is typically required to receive the certificate of completion needed to apply for the state exam.

Reciprocal licensing — selling in multiple states

Once licensed in your resident state, you can typically get a non-resident licence in other states through a reciprocity process — no additional exam required in most cases, just an application and fee. This is important for agents whose clients may reside in neighbouring states or who want to expand their market. The National Insurance Producer Registry (NIPR) provides a centralised platform for multi-state non-resident licence applications.

Step-by-step path

1. Choose your line(s) of authority. Decide whether to pursue Life and Health, Property and Casualty, or both — based on what products you plan to sell and who you'll work for. Your employer or recruiter can advise on which lines they sponsor.
2. Complete pre-licensing education. Enrol in a state-approved provider. Budget 1–3 weeks depending on hours required and your schedule. Obtain your certificate of completion.
3. Schedule and take the state exam. Schedule with your state's exam administrator (PSI, Pearson VUE, or Prometric). The exam is multiple choice, typically 50–150 questions. A score of 70% is commonly required to pass.
4. Submit your licence application. Apply through your state's insurance department or NIPR online. Submit fingerprints for a background check (required in most states). Pay the application fee ($20–$150 depending on state).
5. Affiliate with an appointing insurer or agency. Your licence becomes active once you're 'appointed' by an insurance company — a formal business relationship that allows you to sell their products. This appointment process typically takes 1–2 weeks.

Prepare for the exam