If your insurance agency is recruiting new agents or preparing to expand into new product lines, understanding the different types of insurance licenses is essential. Your agents can only sell the products they are licensed for, which means the licensing choices you guide them toward will directly impact your agency’s revenue, product offerings, and growth potential.
In this guide, we break down the license types most agencies work with, how to help your recruits get licensed, and how EMG Insurance Brokerage supports agencies with fast, efficient onboarding.
Key Takeaways
- The types of insurance licenses your agents obtain determine what lines of business your agency can offer.
- Agencies play a central role in guiding new recruits through pre-licensing, exams, and career appointments.
- EMG Insurance Brokerage provides licensing guidance, multi-state support, and onboarding tools to streamline agent recruitment.
What Are Insurance Licenses and Why Do They Matter for Agencies?
Insurance licenses grant legal authority for agents to sell specific insurance products within a state. For agencies, licensing isn’t just a requirement, it’s a growth strategy. The right licensing mix determines:
- Which products your agency can offer
- Which markets you can serve
- The earning potential of your new agents
- How quickly your producers can enter high-demand segments
Without the proper licenses, agents cannot legally sell policies, provide guidance, or solicit insurance business, making licensing the first critical step of onboarding.
Types of Insurance Licenses Your Agents May Need
The licenses your agents hold determine which products your agency can offer and which markets you can enter. The table below provides a clear, agency-focused overview of the most common license types, what they allow agents to sell, and how they align with your recruiting strategy.
| License Type | What Agents Can Sell | Ideal For Agencies Focused On… | Notes for Recruiters |
|---|---|---|---|
| Life Insurance License | Term life, whole life, IUL, final expense; annuities (varies by state) | High-net-worth clients, wealth & estate planning, final expense | Often paired with health license for a broader offering |
| Health Insurance License | ACA plans, Medicare Advantage, Medicare Supplements, group health, disability income | Senior market, ACA marketplace, employee benefits, niche demographics | High demand; licensing needed before AEP/OEP |
| Life & Health (Combined License) | All life and health products under one license | Agencies building versatile, full-service life & health teams | Most agencies prefer dual licensing for new recruits |
| Limited Lines License | Travel, credit, rental car, pet insurance | Agencies offering supplemental or niche products | Quick to obtain, good for specialty strategy |
Steps to Help Your Agents Get Their Insurance License
Once you determine which licenses your agents need, you’ll guide them through the licensing process. While specifics vary by state, the overall path remains similar. Here’s a simplified breakdown of the steps your agents and recruits need to go through to get their insurance licenses:
Step 1: Require Pre-Licensing Education
Most states require agents to complete pre-licensing coursework covering:
- Insurance fundamentals
- State laws and regulations
- Ethics and compliance
Agency Tip: Provide recruits with EMG-recommended training resources to speed up completion.
Step 2: Schedule and Pass the State Exam
After completing their coursework, agents must take the licensing exam. It typically includes:
- Multiple-choice questions
- State-specific regulations
- Product-specific knowledge
Agency Tip: Track exam dates and send reminders to keep new agents on schedule.
Step 3: Submit the State License Application
Agents will apply through their state Department of Insurance or NIPR. They’ll need:
- Application fees
- Pre-licensing certificates
- Exam results
Step 4: Complete Background Checks & Fingerprinting
Almost all states require:
- Criminal background checks
- Fingerprinting
This step ensures agents meet ethical and legal standards.
Step 5: Receive the License & Begin Carrier Appointments
Once approved, agents will receive their official license. The next step is carrier appointments—an area where EMG provides significant support.
Choosing the Right License for Your Agency Strategy
Selecting the right licenses for your new recruits is a strategic decision that directly impacts your agency’s growth, product offerings, and market competitiveness. By aligning license choices with your business goals, you ensure that agents are entering the field equipped to capture the opportunities most valuable to your agency.
When advising new recruits, consider:
- Your agency’s product focus: Life? Health? Medicare? P&C?
- Market demand: Are you targeting high-growth areas like Medicare or ACA?
- Agent career goals: Some want to specialize; others want dual licensing.
- Your long-term agency plan: Diversify or stay niche?
Helping recruits choose the right license ensures they are productive sooner and aligned with your agency’s growth strategy.
FAQs
Can my agents hold multiple licenses?
Yes, most agencies encourage it. Dual licensing expands the products agents can sell and increases an agency’s earning potential. It also strengthens your service offerings.
How long does it take for agents to get licensed?
Most agents complete licensing in 3–8 weeks, depending on the state. Pre-licensing time, exam scheduling, and application processing all contribute to the timeline.
How often do agents need to renew their licenses?
Generally every two years, though CE (continuing education) hours vary by state. EMG provides support and reminders to help agencies keep agents compliant.
Can agents sell insurance in multiple states?
Yes. Agents need a non-resident license for each additional state. EMG supports agencies with multi-state licensing across all 50 states.
Can new agents get licensed with no experience?
Absolutely. Many recruits start fresh, the licensing process is designed for newcomers. Your agency and EMG’s training programs will guide them from day one.
Conclusion: Empower Your Agents and Grow Your Agency with EMG Insurance Brokerage
Selecting the right insurance licenses and guiding agents through the licensing process is foundational to building a strong, revenue-producing team. With EMG Insurance Brokerage, your agency gains access to the training, tools, carrier appointments, and multi-state support needed to license agents quickly and efficiently.
Ready to strengthen your agent onboarding process?
EMG Insurance Brokerage is here to help your agency recruit, license, train, and grow a high-performing team. Contact us today to get started.
