Kelly’s Korner: Insurance Licenses

Kelly’s Korner: Insurance Licenses

Q. What products require an insurance license?

A. If your dealership offers, sells, or accepts commissions from insurance products, the producer of these products needs to be licensed by your state department of insurance.

There are four types of licenses: (1) Limited Lines License (2) Full Lines Life & Disability License (3) Life Only License and (4) Property & Casualty License. The products your dealership sells will determine which licenses your state will mandate.

Credit life insurance requires a life insurance license. The State of Oregon, for example, will issue a limited lines license for a small fee. Simply submit a completed license application form, recent photograph, and set of fingerprints for the person seeking the license.

Other states demand a full lines license, calling for 52 hours of classes, an application, fingerprints, and successful completion of a state examination. This type of license also obligates the licensee to continuing education.

In some states, you must have a Property & Casualty lines license to sell Gap insurance and physical damage insurance. Since each state has different prerequisites, it is always best to check with your state’s department of insurance to get a full set of instructions for obtaining a license.

You will also need a license in order to receive commissions on renewed physical damage policies. The commissions will far outweigh the effort it takes to secure the license.

Getting all of your licenses is the professional thing to do. Kelly Enterprises definitely recommends it. Contact your agent for forms and assistance.