Licensing Requirements for Insurance Brokers and Agents

An insurance agency, sometimes also known as an insurance broker or independent agent, brokers, drafts and executes policies for a number of insurance providers under contract to one insurance company. They are not actually employed by any single insurance company. Instead, they are independent agents who receive commissions for sales they make to various insurers. In other words, an insurance agency is an intermediary who sells policies to people or organizations at a commission. By clicking we get more information at

As with any profession, there are a number of licenses an insurance agency may require its agents. To practice, these agents must be licensed by the Department of Insurance in each state where they practice. Additionally, the individual must also complete an accredited education course and pass a test demonstrating that he understands the laws governing insurance and the principles of ethics and professionalism. These tests are typically administered by the Department of Insurance or the State Professional Regulations Board. For example, all licensed agents must pass a written communications exam and then take a final exam that covers state practices relating to insurance.

The next step for an agent getting started in the insurance agency business is to get a commercial vehicle such as a van, Hummer or sedan to carry business. This vehicle should be equipped with appropriate working equipment and all required insurance coverage. Once the individual has obtained his or her commercial vehicle, he or she may start shopping for insurance policy quotes. However, before an agent begins seeking potential policy buyers, it is important that he or she gets a copy of his or her state’s insurance commissioner’s business license.