When you need a license

You need an insurance license if you are involved in transacting insurance, including soliciting, selling or negotiating insurance contracts.

Soliciting (advertising)

You will need to be licensed if you:

  • Attempt to get someone to purchase an insurance policy with a company
  • Initiate sales over the phone, internet or social media
  • Advertise insurance companies or their policies

Selling

Without a license you cannot:

  • Distribute information about coverages or rates in general or for any particular policy, unless that information is publicly available
  • Complete or sign applications for insurance
  • Make or propose an insurance contract
  • Authorize the issuance or delivery of certificates of insurance, endorsements, binders or insurance policies

Negotiating

Examples of negotiating include:

  • Discussing or describing the coverages or terms of a proposed insurance contract, as well as advising what coverages to purchase
  • Discussing the impact of age, health or other risk-related conditions of the prospective policyholder
  • Collecting premiums in person anywhere other than a place of business
  • Providing advice or counsel about policy provisions or coverage

When you don’t need a license

You can work for an insurance company and not need an insurance license as long as you:

  • Do not receive a commission on policies written or sold
  • Your activities are executive, administrative, managerial, clerical or a combination of these
  • You are only indirectly related to the sale, solicitation or negotiation of insurance