06 Mar WHAT IS A LIFE AND HEALTH INSURANCE LICENSE?
In order to be able to sell any kind of insurance, especially health and life insurance, a person needs to get a license. Earning this license is the first step in order to become an insurance agent. This license is legally required in order for a person to be able to sell health and life insurance.
The requirements for this license differ from state to state so each state has their own license. An insurance agent who has a license in New York cannot practice in California as the license for California is different. In order to acquire this license, each candidate must pass the exam set by the state for which they want to practice in. Only after they successfully pass this exam can they solicit and build a book of business of health and life insurance within that state.
Once the individual acquires their license they are legally allowed to work for any insurance agency or practice on their own an independent broker who has access to multiple different brands and their products.
Life Insurance License:
A life insurance license is what gives an individual the right to sell life insurance to the public. This license is legally required to be carried by every broker, whether they practice on their own or work for a company.
All fifty states in the United States of America require an individual to acquire a license before they are allowed to practice and sell insurance of any kind. The requirements for the license differ from state to state and the person needs to pass an exam in order to qualify and be eligible for the license.
One of the requirements that an individual needs to keep up with is Continuing Education Requirements. This means that every person who wants to retain their license needs to take continuing education courses. This ensures that their knowledge of the industry, procedures, ethical standards and legal requirements stays up to date.
The most common time period after which the license needs to be renewed every two years. This time-frame may vary depending on the state. The procedure is mostly just paying a fee as the continuing education requirement is what ensures that the individual is up to date on the current standards and practices or not.
Health Insurance License:
Similar to life insurance licenses, a person cannot sell health insurance in the USA without carrying a valid license. Depending on the state the individual plans to practice in, they might need to carry a specific health insurance license. In some cases a general license is also acceptable.
Health insurance protects people from suffering from any kind of financial loss due to any injuries or illness. An individual can collect payments on an insurance policy without a license. However, signing up clients, explaining insurance policies and products and processing applications does require a license as that falls under the umbrella of selling insurance.
Each state sets their own requirements for the license in their state along with the application process. The maintenance for the license is also similar to what is required for a life insurance license as there is a requirement for continuing education. This is necessary to ensure that the individual stays up to date on the changes that have come around.