How Many Different Types of Insurance Licenses Are There?

There are many types of insurance licenses available depending on what type of insurance the agent (potential or already established) wants to sell. After paying a fee, and passing a licensing exam, each state issues insurance licenses. Licenses can be obtained for homeowners and property lines, as well as casualty. Agents can also obtain an insurance license to be able to sell life insurance products.

Fire and Casualty

A fire and property license is required for individuals who want to sell insurance, act in the capacity of an agent or open their own agency. This license allows an individual to offer a variety of insurance products that are provided by a property or casualty insurer. These include personal property, automobile, and motorcycle insurance, as well as flood or earthquake insurance. The license allows 24-hour coverage, long-term care, and bodily injury insurance.

Limited Lines Automobile

This license allows a representative of insurance products only to carry out automobile insurance business in a specific state. Some states allow motorcycles to be included in a limited-line automobile license. There are many states that have specific insurance laws that define an automobile to be insured. A private passenger vehicle is the most common definition.

Personal Lines

Personal lines licenses are similar to fire and casualty insurance, but limit insurance products to personal products like automobile or personal property. This license allows for personal watercraft, umbrella, and excess liability insurance. Excess liability refers to insurance coverage that goes beyond the limits of a standard automobile policy or personal property policy.

Life-only Agent

A life-only agent license allows an individual to only conduct life insurance business in one state. This covers coverage that provides benefits to policyholders or beneficiaries. This coverage can include standard life insurance, annuities and income from disability. The license lists the types of insurance products that are available.

Accident and Health

A license to act as an accident and health agent is the same as a life-only license, but it includes additional insurance products. This type of license includes health insurance. It covers sickness and accidents. Worker’s compensation is another option. This type of license allows you to provide credit disability insurance.