Licensing FAQ for Insurance Agents & Adjusters

General Licensing Questions

1. Who needs a license to sell or adjust insurance?

Anyone who engages in the business of selling, soliciting, or servicing insurance policies, or who performs adjuster duties for compensation, must hold a valid state license. This includes independent agents, captive agents, brokers, and public adjusters.

2. What types of licenses are available?

The most common licenses are:

• Producer (Agent) License Allows the holder to sell, solicit, and solicit renewals for insurance products.
• Adjuster License Authorizes the holder to investigate, evaluate, and settle claims.
• Public Adjuster License Specific to adjusters who work on behalf of policyholders, not insurers.
• Surplus Lines License Required for agents who place business with nonadmitted carriers.

3. Can I hold multiple licenses?

Yes. Many professionals maintain both an agent and an adjuster license to expand their service offering. Each license must be applied for and maintained separately.

Applying for a License

4. What are the basic steps to obtain a license?

While the exact process varies by state, the typical steps are:

1. Complete prelicensing education (usually 2040 hours).
2. Pass the state licensing exam.
3. Submit a fingerprint background check.
4. Complete the online application and pay the fee.
5. Receive the license and file any required surety bond.

5. How long does it take to get licensed?

From the start of education to receiving the license, the process typically takes 48 weeks, assuming timely completion of each step.

6. Do I need a college degree?

A college degree is not required. However, many states require a high school diploma or GED and completion of the mandated prelicensing coursework.

Continuing Education & Renewal

7. How often must a license be renewed?

Most states require renewal every two years. The renewal date is tied to the birthday on the license or the date of issuance, depending on the jurisdiction.

8. What continuing education (CE) credits are required?

Typical CE requirements are 2430 credit hours per renewal period, with at least 3 hours in ethics and 23 hours in statespecific law.

9. Can I complete CE online?

Yes. Approved online courses are accepted in all states, provided the provider is listed on the states approved CE roster.

StateSpecific Issues

10. Do I need a separate license for each state?

Generally, yes. Licenses are statespecific. Some states participate in the NAIC NonResident Licensing program, allowing agents to obtain a nonresident license in other participating states with less paperwork.

11. How does the NAIC NonResident License work?

If you hold a resident license in a participating state, you can apply for a nonresident license in another participant state by submitting a single application and paying the applicable fee. You must still meet the nonresident states CE requirements.

12. What if I move to a new state?

You must obtain a resident license in the new state. You can often retain your nonresident licenses, but you will need to meet the new states CE and renewal rules.

AdjusterSpecific Questions

13. What is the difference between a staff adjuster and an independent adjuster?

Staff adjuster: Employed directly by an insurance carrier to handle its claims. Independent adjuster: Works on a contract basis for multiple carriers or as a public adjuster for claimants.

14. Do I need a separate license to handle flood or earthquake claims?

Many states require a specific endorsement for certain types of claims (e.g., flood, wind, or earthquake). Check your states department of insurance for endorsement requirements.

15. Can a public adjuster also be a licensed agent?

Yes, but the two roles must be kept separate. When acting as a public adjuster, you cannot solicit insurance sales and must disclose any potential conflicts of interest.

Compliance & Discipline

16. What actions can cause a license to be suspended or revoked?

Common causes include:

• Fraudulent claims handling or policy misrepresentation.
• Failure to meet CE or renewal deadlines.
• Criminal convictions related to fraud, theft, or moral turpitude.
• Violation of state insurance statutes or regulations.

17. How can I check the status of my license?

Each state maintains an online license lookup portal. Search by name, license number, or company name to view status, expiration, and any disciplinary actions.

18. What should I do if I receive a disciplinary notice?

Respond promptly according to the instructions in the notice. You may need to provide documentation, attend a hearing, or complete remedial education.

Costs & Fees

19. What are the typical costs associated with licensing?

Costs vary by state but generally include:

• Prelicensing education: $150$400
• Examination fee: $50$150
• Application fee: $75$250
• Fingerprint/background check: $30$60
• Renewal fee (every two years): $100$300

20. Are there any fee waivers or discounts?

Some states offer fee reductions for veterans, activeduty military, or individuals who qualify for financial hardship. Check the states insurance department website for eligibility.

Resources

For additional information, consult the following resources:

• National Association of Insurance Commissioners (NAIC)
• Insurance Licensing & Education (IDEAL) Consortium
• State Insurance Regulators Association

Questions not covered here can be directed to your states Department of Insurance or a licensed professional compliance consultant.