How Do Pre-Licensing Requirements for Insurance Agents Vary by State?
Because insurance is regulated at both the federal and state levels, the requirements for becoming an insurance agent can vary from one state to another. Anyone who wants to become an insurance agent will need to familiarize themselves not just with the laws regarding insurance in their state, but also their state’s exact requirement for obtaining an insurance license, before they are able to properly sell insurance within their jurisdiction.
Insurance Pre-Licensing Requirements
One thing that all states have in common is that insurance agents must be licensed to legally sell insurance within their borders. Insurance pre-licensing exams test a would-be agent’s knowledge of the rules and regulations regarding the sale of insurance, how insurance claims are handled, what restrictions apply to insurance coverage, and other similar matters of importance. In order to become an insurance agent, one needs to pass this exam in their home state.
In general, an insurance licensing exam will have section on national insurance material, as well as another section that covers insurance regulations at the state level. Since federal insurance guidelines apply to all states in the union, this particular part of the test will be very similar in every state (though the exact questions will likely vary). The local insurance law section, however, will be different in each state. As such, aspiring insurance agents need to familiarize themselves with more than just national insurance materials.
Can I Sell Insurance in More Than One State?
It is possible for an insurance agent to sell insurance in more than one state, though doing so may involve additional licensing. When a person passes their state’s insurance licensing exam, they can apply for a resident insurance license for their state. While some states have agreements with each other that allows insurance agents to sell across state lines without getting licensed in each state, these agreements are not in place in all jurisdictions. If you plan to sell insurance in another state, contact their Department of Insurance to find out what that state’s exact procedure is to obtain a non-resident license.
How Should I Prepare for a State Insurance Licensing Exam?
In order to pass an insurance licensing exam, you’ll need to take an insurance pre-licensing course based on your state’s laws and regulations regarding the sale of insurance. These insurance pre-licensing courses generally cover both federal guidelines and local insurance law, and are taught to cover material that will be included on the test.
If you’re not sure where to start preparing for an insurance licensing exam, America’s Professor offers online insurance pre-licensing courses for multiple states, taught by industry professionals with decades of experience working in the industry and preparing new insurance agents to take their insurance licensing exams. Our online video format lets you take our classes on your own schedule, and our guarantee of satisfaction means that if you don’t pass your exam, we will extend your subscription until you do.
|Insurance Licensing Courses||Insurance Practice Exams|