How to Become an Insurance Agent
A comprehensive step-by-step guide to passing the licensing exam & becoming an insurance agent
Author: Matt Williams, CLU, ChFC, CFP®
Last updated: August 9, 2024
Becoming an insurance agent is a bit like getting access to a controlled kitchen: you can’t serve the public until you’ve proven you know the recipes (insurance concepts), the health code (state laws), and your identity checks out (background review). Most states follow the same core flow:
Pick what you want to sell (line of authority)
Confirm eligibility
Pre-licensing education (what it is + how to choose)
Exam (topics + study plan + registration)
Test day (what to expect)
Apply for license (NIPR/state portal)
Fingerprints and background check
After licensing (appointments, CE, renewals)
FAQ: How long it takes, costs, can I do it online, what if I fail, etc.
Step #1
Decide Which Insurance License(s) You Need
First things first...What kind of insurance do you want to sell? This decision will determine which type of license you need to pursue. For instance, if you're interested in selling auto, homeowners or business insurance you'll need a Property & Casualty (P&C) license; if you plan to sell life insurance, health insurance and/or annuities it's a Life & Health (L&H) license you are after.
Insurance licensing is typically organized by Line of Authority (LOA), meaning what you’re allowed to sell. Common LOAs include:
Life
Accident & Health (Health)
Property
Casualty
Personal Lines (often a packaged consumer-focused P&C license)
Variable Life / Variable Annuity (often requires securities registration too)
Title (state-dependent)
Travel, Credit, and other Limited Lines (varies widely by state)
While there are plenty of options, most agents start with either a Producer’s Combined Property and Casualty license or a Producer’s Combined Life, Accident and Health license—or both. Why? Because:
These licenses let you offer a broad range of the most common insurance products.
If you are just starting out, having both of these licenses will make you very marketable.
Insurance companies absolutely love candidates who come in the door already licensed. Proactively obtaining these licenses is a simple way to drastically increase your starting salary.
Step #2
Understand Licensing Requirements (The Big Picture)
In the U.S., insurance agents (often licensed as producers) are regulated at the state level. Each state’s insurance department sets rules for:
Which licenses exist and what they’re called
Pre-licensing education requirements (hours, format, providers)
Exam vendor and registration steps (often PSI or Pearson VUE)
Application process (often through NIPR/Sircon)
Background checks, fingerprinting, and fees
A good “north star” for how states commonly structure licensing is the NAIC’s uniform standards and licensing resources.
Eligibility Criteria (Common Nationwide Requirements)
Most states require that you:
Be at least 18 years old
Have a valid Social Security Number or other state-accepted ID
Answer background history questions honestly (criminal, administrative, financial)
Complete education/exam requirements for your line(s) of authority
Submit fingerprints/background check if required
Important: A past conviction doesn’t always disqualify you, but non-disclosure often does. Many states evaluate factors like the nature of the offense, time elapsed, and rehabilitation.
Step #3
Pre-Licensing Education Requirements (What “Pre-Licensing” Means)
Many states require you to complete a pre-licensing course before you can sit for the exam, but:
Required hours vary by state and LOA
Some states accept online self-paced; others require live/classroom or proctored components
Some states waive pre-licensing for certain professional designations or prior credentials
NAIC licensing materials discuss how states implement pre-licensing and fingerprinting standards, but your state guide will give the exact hours and rules.
How to Choose a Pre-License Education Course
When you build your course selection section, focus on fit + compliance:
A. Verify it’s accepted by your state
Look for:
“State-approved” language
Course certificate meeting your state’s requirements
Correct LOA (Life vs Health vs P&C are different tracks)
B. Match the learning format to your reality
Self-paced online: flexible, good for disciplined learners
Live online/classroom: structure, accountability, instructor Q&A
Hybrid: often best of both worlds
C. Prioritize exam alignment
A strong course usually includes:
Practice quizzes + timed exams
A “state law” or “state-specific” module
Clear tracking and a completion certificate
D. Watch the calendar
Some states require that your education be completed within a specific window before applying or testing (state-specific).
Some states don’t require you to complete a set number of pre-licensing education hours before you can take your licensing exam. That said, enrolling in a pre-licensing course is still a smart move.
Why? Because these courses are packed with resources that can help you pass your exam on the first try. With text and video lessons, study calendars, and personalized learning it’s an investment that can save you time, money, and stress in the long run.
Nothing on the licensing exam can be considered "common sense" and having some "real world" experience may actually be detrimental...How things work in the real world Vs what is on the exam are two completely different animals! At the very least you should consider some inexpensive study tools created by TESTivity. Some of the most effective study aids they offer include:
Flashcards A great way to prepare for a knowledge-based, content-driven, multiple choice exam...Like the one you are about to take.
Crosswords Designed to help you learn and retain the information necessary to pass the insurance agent licensing exam.
Practice Exams Quizzes and final exams that are weighted to mimic the actual insurance exam in your state.
Audio courses By listening to the course content, you can fully concentrate on the material without distractions.
A pre-licensing education course greatly increases your chance of passing the exam on your first attempt, which can end up saving you both time and money in the long run. GetTheLicense.org recommends Achievable.
Recommended:
Take a look at Achievable's pre-licensing course. Their course is without question the best. It includes everything you need to pass the exam and get your insurance license.
Step #4
How to Register for the Exam (Typical Process)
Registration varies by state, but commonly looks like this:
Create an account with the state’s exam vendor (often PSI or Pearson VUE)
Select:
Your state
Your exam type/LOA (Life, Health, P&C, etc.)
Pay the exam fee
Choose test format:
In-person at a test center, or
Online/remote proctored (if offered for your state)
Schedule your date/time
Visit our state specific pages a “Candidate Information Bulletin” or handbook with exact steps and policies (and what scores mean, retake rules, etc.).
How to Prepare for the Exam (A Practical Study Plan)
Here’s a study approach that works even for busy schedules:
Step 1: Build the map (Day 1)
Skim the course outline/exam content areas
Identify your weak zones (contracts? state law? P&C liability?)
Step 2: Learn in “layers” (Days 2–10)
Pass 1: watch/read for understanding (no perfection)
Pass 2: do quizzes by topic
Pass 3: do mixed-question sets (like the real exam)
Step 3: Start doing timed practice early (Days 5+)
The exam is as much about pacing as knowledge
Aim for multiple full-length timed practice tests
Step 4: Drill state law repeatedly (Last 2–3 days)
Make a 1–2 page “state law cheat sheet” (for studying only)
Re-quiz until you’re consistently strong
Step 5: Fix the “test-day” basics
Sleep
Eat
Arrive early
Bring the correct IDs
Key Topics Covered on the Licensing Exam (What You’ll Actually Be Tested On)
While outlines vary by LOA and state, most producer exams draw from:
Insurance fundamentals
Risk, hazards, insurable interest
Contract law basics (offer/acceptance/consideration)
Policy structure (declarations, insuring agreement, exclusions, conditions)
Ethics and consumer protection
Unfair trade practices
Privacy and data handling
Fiduciary-like responsibilities (depending on product/context)
State rules and regulations
Licensing requirements and prohibited conduct
Advertising rules
Complaints, investigations, penalties
Product-specific knowledge (depends on LOA)
Life: term vs permanent, annuities, beneficiaries, riders
Health: individual vs group, major medical, Medicare basics (high-level), disability, dental/vision
Property/Casualty: homeowners, auto, commercial basics, liability concepts, limits/deductibles, claims handling
Pro tip: State law questions are often the easiest points to lose because people over-focus on products and under-focus on rules.
Step #5
What to Expect at the Testing Center (Check-in, Security, Rules)
Most test centers run like quiet airport security with keyboards:
Common check-in steps
Present required ID (sometimes two IDs depending on program rules)
Sign candidate rules agreement
Secure personal items in a locker (phone, watch, notes usually prohibited)
Photo capture and/or biometric verification may be used depending on program
During the exam
Computer-based multiple-choice
Proctor monitoring
No talking; no studying in the center; strict rule enforcement Pearson VUE+1
After the exam
You typically receive a score report immediately (pass/fail, sometimes with topic-level feedback)
Step #6
Submit Your Insurance License Application
After you pass, most states have you apply through:
The state’s own portal, or
NIPR (National Insurance Producer Registry) / Sircon pathways
NIPR is widely used as a centralized platform to apply for and manage licenses across states.
General steps:
Submit the license application (resident producer)
Pay state + transaction fees
Complete background questions and upload any required documents
Submit fingerprint/background check items if required
Track application status and respond quickly if the state requests clarifications
Step #7
Get Fingerprinted and Undergo a Background Check
Many states require a criminal history background check, often including electronic fingerprints. NAIC resources describe fingerprint requirements and the broader move toward electronic fingerprinting as part of resident licensing.
What applicants should expect:
Fingerprinting appointment (often via an approved vendor)
Fee paid during application or scheduling (state-specific)
Processing time (can be fast or can add days/weeks)
Some states even integrate fingerprint fee collection into the online application flow.
Step #8
Other Pertinent Considerations (The Stuff People Discover Late)
A. Carrier appointment vs. just having a license
In many states, you can hold a license without being appointed, but you generally need an appointment (or an agency relationship) to sell policies for specific insurers. This is often handled after licensing.
B. Resident vs. non-resident licensing
Your first license is typically your resident license (home state)
If you want to sell in other states, you apply for non-resident licenses, often streamlined through NIPR
C. Continuing education (CE) and renewals
Most states require periodic renewal and CE to keep your license active. Your state-specific guides should include:
Renewal cycle
CE hour requirements
Any ethics requirement
D. Name matching and paperwork friction
A surprisingly common delay: the name on your exam registration doesn’t match your IDs. Pearson VUE’s ID policies highlight strict ID requirements and name matching.
E. Retakes and waiting periods
States differ on retake limits and cooling-off periods. Your state guides should include:
How soon you can retest
Whether you must pay again (usually yes)
Any cap on attempts within a time window
E. Fees Associated With Licensing (What to Budget For)
Exact costs vary by state, but the common fee buckets are:
Pre-licensing education (course cost)
Exam fee (each attempt)
License application fee (state fee)
Transaction fee (portal processing fee, often via NIPR/Sircon)
Fingerprint/background check fee (if required)
Optional but common:
Study tools (practice exams, flashcards)
Errors & Omissions (E&O) insurance (often required by agencies/carriers)
Agency onboarding fees (varies by agency)
For more detailed information, check out How to Get a L&H Insurance License and How to Get a P&C Insurance License.
FAQs About Becoming an Insurance Agent
How long does it take to become an insurance agent?
For most people, the process takes a few weeks to a few months, depending on your state, the license type, and how quickly you complete pre-licensing education and schedule your exam. Delays most often come from exam retakes, background checks, or waiting to submit the license application.
Do I need a college degree to become an insurance agent?
No. A college degree is not required to become a licensed insurance agent in any state. You must meet age and eligibility requirements, complete any required pre-licensing education, and pass the state licensing exam.
Is pre-licensing education required in every state?
No. Some states require pre-licensing education for certain licenses, while others allow you to sit for the exam without it. Requirements also vary by license type (Life, Health, Property, Casualty, etc.). Always check your state’s specific rules.
Can I complete pre-licensing education online?
In many states, yes. Most states allow online, self-paced pre-licensing courses, though some require live instruction, proctored exams, or a combination. State rules determine what formats are accepted.
How hard is the insurance licensing exam?
Difficulty is subjective, but most candidates describe the exam as manageable with proper preparation. The exam tests insurance concepts, state laws, and ethical responsibilities. People who struggle often underestimate the importance of state-specific rules or don’t practice timed exams.
What is the passing score for the insurance exam?
Most states require a score of around 70%, but the exact passing score varies. You’ll receive a pass/fail result immediately after finishing the exam in most cases.
What happens if I fail the insurance licensing exam?
If you fail, you can usually retake the exam after a waiting period set by your state. You’ll need to pay the exam fee again. Some states limit how many attempts you can make within a certain timeframe.
How much does it cost to get an insurance license?
Costs vary by state, but typical expenses include:
Pre-licensing education
Exam fee
License application fee
Background check and fingerprinting (if required)
Processing or transaction fees
Most candidates should budget for multiple separate fees, rather than a single flat cost.
Is becoming an insurance agent worth it?
For many people, yes. Insurance careers can offer:
Flexible schedules
Commission and/or salary opportunities
Long-term client relationships
Growth into agency ownership or management
Success depends heavily on training, sales skills, and persistence.
Do I need a background check to become an insurance agent?
Many states require a criminal background check and fingerprinting. A past conviction does not automatically disqualify you, but failing to disclose required information can lead to denial.
Can I get an insurance license with a felony or misdemeanor?
Possibly. Eligibility depends on:
The type of offense
How long ago it occurred
Whether it’s related to fraud or financial misconduct
Whether you disclose it honestly
States review applications individually, and disclosure is critical.
How do I apply for my insurance license after passing the exam?
After passing, you submit a license application through your state insurance department or a national licensing portal. You’ll answer background questions, pay fees, and complete fingerprinting if required.
Do I need to be hired by an insurance company before getting licensed?
No. You can usually obtain a license before being appointed by an insurance company. However, you typically need an appointment or agency affiliation to actually sell insurance products.
What’s the difference between being licensed and being appointed?
Licensed: You are legally authorized by the state to sell insurance.
Appointed: An insurance company authorizes you to sell their products.
You need both to sell policies, but licensing usually comes first.
Can I sell insurance in multiple states?
Yes. After obtaining your resident license, you can apply for non-resident licenses in other states. Many states offer streamlined reciprocity, meaning you don’t have to retake exams.
How long is an insurance license valid?
Most insurance licenses must be renewed every 1–2 years, depending on the state. Renewal typically requires paying a fee and completing continuing education (CE).
What is continuing education (CE)?
Continuing education consists of required training hours you must complete to renew your license. CE ensures agents stay current on laws, ethics, and insurance practices.
Can I lose my insurance license?
Yes. Licenses can be suspended or revoked for reasons such as:
Fraud or misrepresentation
Failure to disclose required information
Unethical conduct
Letting the license lapse
Violating state insurance laws
Insurance Licensing Resources Mentioned on this Page
Recommended Utah Insurance Pre-license course--Achievable.me
Stand Alone Utah Specific Study Aids--Flashcards-Crosswords-Practice Exams
Utah Insurance License Application--Online-Sircon
Utah Insurance License Application--Online-National Insurance Producer Registry (NIPR)
Utah Insurance License Application--Paper Version
Utah Insurance License Reinstatement Application