How to Become a Licensed Insurance Agent.
By Brewer Team
How to Become a Licensed Insurance Agent
If you’re wondering how to become a licensed insurance agent in the United States, we’ll go through the process in detail here in this post. Each state has its requirements for licensing, and we will go through the general requirements first and then get into more detail about insurance licensing in North and South Carolina.
What is an insurance agent license and why is it important?
Like most professionals, insurance agents must be licensed before they are allowed to sell insurance to the public. A license for an insurance agent is a necessary first step towards a rewarding insurance career.
What are the different types of insurance licenses and how are they different?
There are two main types of insurance licenses based on the kinds of insurance you would like to sell, Property and Casualty insurance and Life, Accident and Health insurance.
Property and Casualty Insurance
Property and Casualty insurance, or P&C, is insurance that pays for the loss or damage to things you own like your car or your home and contents. It also covers you in case you damage other people or their stuff and are sued for the damages.
As the name suggests, property insurance is the part that covers loss or damage to your property, and your stuff, and casualty insurance, which today we generally call liability insurance, protects you in case you are found liable for damages you cause to others or their stuff. For example, if you cause an automobile accident and hurt somebody in the other car or cause damage to their car. This would be covered by your automobile liability insurance. The damage to your car in this case would be covered by your property insurance.
Several states separate this into two different license areas – Property insurance and Casualty insurance, while in others it is one license area – Property and Casualty.
Life, Accident and Health Insurance
The second type of insurance license you may get is called Life, Accident and Health, or sometimes LA&H. Just as with Property and Casualty, some states separate this into two licenses – Life insurance and Accident and Health insurance, while in other states it is one license. Both of these types of insurance have to do with damage to you – not your stuff.
Life Insurance protects you and your loved ones in case you die too soon. Life insurance promises to pay a specified dollar amount to whoever you choose in the event of your death – whenever it occurs.
Accident and Health insurance includes several different types of insurance – those that cover your medical bills if you get sick or injured, the cost of dental bills, the cost of long-term care and payment for a disability due to a sickness or accident.
What do you need to do to become a licensed insurance agent?
Becoming a licensed insurance agent involves a similar process across America. In the United States, insurance licensing is handled and regulated at the state level. This means that each state regulates the insurance and insurance agents and companies doing business in that state. For this reason, each state has its specific requirements.
First, we’ll talk about the similarities and generalities. And then we’ll get into the specific requirements for getting an insurance license in North Carolina and South Carolina.
How to get an insurance license in America, in general
To get your insurance license anywhere in the United States, the process is similar and generally starts with your having to take some sort of licensing exam to test whether you have a basic knowledge of the insurance laws of that state as well as an understanding of insurance in general and the specific types of insurance you will be selling. The purpose of the insurance licensing exam is so you can show that you have a level of understanding of the insurance laws and these important insurance policies for your customers.
Many candidates for licensing take an insurance Pre-licensing course to learn the material they will be tested on. In some states, this is a requirement and in other states it is optional.
How do I choose a Pre-licensing course provider?
There are many Pre-licensing course providers, some of which offer classes in person on the web or via correspondence. In the states that allow it, there are also self-study courses where you study on your own at your own pace but without any outside assistance.
You should choose a Prelicensing provider with a proven record of success and who offers courses regularly that you can fit into your schedule.
Brewer Insurance School offers both Property and Casualty and Life, Accident and Health Pre-licensing courses that meet the requirements for both South Carolina and North Carolina licensing. We have courses scheduled in person and also via Zoom meetings.
FAQs about getting your insurance license
Getting an insurance license can feel a bit daunting. Once you have decided that this might be the career for you, we will answer all of your FAQs here so you can move forward with confidence and realize how doable it will be.
How old do I have to be to get an insurance license?
In both South Carolina and North Carolina, you must be at least 18 years of age to get an insurance license.
What is a line of authority?
Each different type of insurance license is called a line of authority. In South Carolina there are two lines of authority, Property & Casualty and Life, Accident and Health. In North Carolina, there are four lines of authority, Property, Casualty, Life, Accident and Health or Sickness.
Although you will only have one insurance license no matter how many lines of authority you are licensed in, each line of authority will require a separate examination.
Will I need to take a test to get my license?
Yes. In both North Carolina and South Carolina, the insurance tests are given by a third-party provider called Pearson VUE. You will need to register in advance with Pearson VUE to take the test. Here are the links to Pearson VUE for the two states.
In South Carolina, since there are two lines of authority, there is one test for Property and Casualty and one test for Life, Accident and Health.
In North Carolina, since Property and Casualty are two lines of authority, it is separated into two exams, Property insurance and Casualty insurance and the same for Life, Accident and Health, which is separated into lines of authority and therefore two exams, Life insurance and Accident and Health or Sickness insurance.
How much does the exam cost?
In South Carolina, both the P&C and LA&H exams cost $59 each. In North Carolina, each exam, Property, Casualty, Life, Accident and Health or Sickness is $45.
How long is the insurance exam?
In South Carolina, both the Property & Casualty and the Life, Accident and Health exams consist of 140 questions which will cover state rules and regulations as well as general insurance topics and the specific policies involved in each license line. You will have 150 minutes to complete each exam.
In North Carolina, each exam, Property, Casualty, Life, and Accident and Health or Sickness, consists of 55 questions. You will have 75 minutes to complete each exam. The topics will include state rules and regulations, general insurance topics, and questions about the specific policies included in each line.
How do I apply for my insurance license?
Although each state has its own rules, you generally will apply for your license through an organization called NIPR – The National Insurance Producer Registry, found at www.nipr.com.
Do I need to take a Prelicensing course to get my license?
In South Carolina, a Pre-licensing course is not required but is recommended. In North Carolina, you must take a 20-hour Pre-licensing course for each insurance line of authority before you will be allowed to take the test.
How much does it cost to get an insurance license?
In South Carolina, each license application has a $25 application fee. You can apply for each line of authority separately or both lines of authority at the same time for one application fee. In North Carolina, each line of authority will cost $94. NIPR also charges a fee for processing your application.
There will also be a separate fee for fingerprinting for your criminal background check.
Must I get a criminal background check to get licensed?
In most states today this is a requirement. In both North Carolina and South Carolina a criminal background check is required. This is done by getting fingerprinted. The process is different in each state. See the details later in this post.
How long does my insurance license last?
In both North Carolina and South Carolina your insurance license does not expire, it is issued for an indefinite period. In each state, to keep your license, however, you must complete at least 24 hours of Continuing Insurance Education (CE) every two years.
In South Carolina, you must also renew your license every two years for a $25 application renewal fee.
How to become a licensed insurance agent in South Carolina
Easy steps to get your SC insurance license
To get your South Carolina insurance license, you’ll want to take the following steps:
· South Carolina does not require Pre-licensing education, so you can study for the exam on your own or take a Pre-licensing course.
· Taking a Prelicensing course with Brewer Insurance School, however, has the advantage of having an experienced instructor who can guide you through the requirements and ensure you are learning the material that is necessary for the exam as well as answer questions about any material you may have problems with.
· Schedule your licensing exam with Pearson VUE. You can take the exam at one of their test centers or online at your home or office through their OnVUE system.
· You must provide an unexpired government-issued photo ID to take the exam
· Once you pass your exam, you must wait at least two days before applying for your license online at nipr.com.
· Apply and pay your application fee.
· Contact IdentoGO to get fingerprinted. The South Carolina Department of Insurance has contracted with IdentoGO to do the fingerprinting and background checks. The fee is $51.75 Their website is https://www.identogo.com/
· You will get a receipt once you have been fingerprinted. E-mail your IdentoGo receipt to the Department of Insurance at agentmail@doi.sc.gov
· Once your fingerprints have been submitted to the SC Department of Insurance your license should be processed in a day or two.
For more information, here is a link to the South Carolina Department of Insurance website.
How to become a licensed insurance agent in North Carolina
Simple steps to get your NC insurance license
To get your North Carolina insurance license, follow this plan…
· Apply online for your license at nipr.com and pay the associated licensing fee
· You will receive an email with a Fingerprint Submission Packet.
· There is a one-time $38 fingerprinting fee. This is per license, not per line of authority
· Fill out the forms and contact local law enforcement about Livescan fingerprints.
· Go to local law enforcement and get your electronic fingerprints done
· Register for and take a 20-hour Pre-licensing course for the line of authority desired.
· Once you complete the Prelicensing Education (PLE) course you will receive an Examination Admission Ticket
· Schedule your examination through Pearson VUE
· Make sure to bring your Examination Admission Ticket with you to the exam along with an unexpired government-issued photo ID
· Take and pass the examination for the line of authority you desire
· You must pass your examination within 90 days of completing your PLE
For more details on obtaining your North Carolina insurance license, we have provided a link to the Licensing page at the NC Department of Insurance.