Licensing Requirements for Becoming a Health Insurance Agent

If you’re interested in pursuing a career selling health insurance, getting your insurance agent license is the first step.

Not only does this process ensure that you have the knowledge and ethics to serve clients responsibly, but it’s also a legal requirement in every state.

You may have questions around insurance agent licenses. As a top field marketing organization in the health insurance industry, we have experience helping many agents get licensed and start selling. Here’s what you need to know about health insurance licensing requirements.

When Is an Insurance Agent License Required?

An insurance agent license is required any time a person sells, solicits, or negotiates insurance products or services on behalf of an insurance company.

This includes:

• Advising a potential client to buy a specific policy
• Initiating sales over the phone or through other means
• Making or proposing to make an insurance contract

In short, if you’re involved in the process of helping someone choose or purchase insurance, you must be licensed by your state’s Department of Insurance. Most state departments have reciprocal agreements, however, and recognize licenses from other states without requiring a retest. Selling insurance without a license is illegal and can lead to fines, legal action, and disqualification from working in the industry.

Why Is Licensing Required for Insurance Agents?

Insurance agents help individuals, families, and businesses choose coverage options that best fit their needs.

Since you’re helping clients secure health care coverage and handling sensitive information, licensing ensures that agents understand laws, policy provisions, and ethical practices. It also protects consumers by holding agents accountable to state or federal regulations.

Who Can Get Licensed to Sell Health Insurance?

To sell health insurance in the U.S., you must be a U.S. citizen or legal alien with work authorization from the U.S. Generally, you have to be at least 18 years old and reside in the state in which you want to get your license.

Can I Become an Insurance Agent If I have a Criminal Record?

Having a criminal record can prevent individuals from obtaining their health insurance license, but that’s not always the case. It depends on the seriousness and type of crime(s) as well as the licensing state.

How Can I Become a Licensed Health Insurance Agent?

Even though licensing requirements depend on what state you’re selling in, the core steps are similar across the country.

Complete a Pre-Licensing Course

Many states require pre-licensing coursework to be completed before you take the state licensing exam. For example, in Pennsylvania, an agent must first complete 24 hours of pre-licensing education credits in either Life and Accident & Health or both before they are permitted to register for the examination.

A list of approved courses for each state can be found on Sircon.

• Simply click on Approved Courses Inquiry
• Select the desired state
• Choose Pre-Licensing Education for the Education Type

Once the courses have been completed, you’ll receive a certification of completion. Some states allow online courses, while others may require in-person instruction.

Pass the Licensing Exam

After completing pre-licensing education, you must pass a state-administered licensing exam. Bring your certificate of completion from your pre-licensing course, and a valid form of ID with you on test day.

The exam typically consists of two sections:

• General knowledge (insurance concepts, laws, and ethics)
• State-specific regulations (rules and procedures particular to your state)

The exams are usually multiple choice, and a passing score is generally around 70 percent or higher.

If you need help studying for PA licensing, you can find content outlines for your specific exam here!

Submit an Application and Pay Fees

Once you’ve passed the exam, you must submit an official license application through your state’s Department of Insurance or licensing portal (like NIPR – the National Insurance Producer Registry). This application often includes a licensing fee, which varies by state.

For example, here are the insurance licensing fees for Pennsylvania:*

• Initial: $55
• Timely Renewal: $55
• Lapsed License Renewal: $165
• Additional Line of Authority: $25

*Subject to change. Additional fees may apply.

How Do Insurance Agents Maintain Their License?

Once licensed, you must complete continuing education (CE) credits to keep your license active. Most states require 24 hours of CE every two years, including a portion dedicated to ethics training.

You will need to renew your license every two years and within 60 days prior to the expiration date. If you need to find out your license expiration date, you can find it at the National Association of Insurance Commissions.

Becoming a licensed health insurance agent requires time and commitment — but it opens the door to a rewarding career helping people navigate one of life’s most important decisions: their health care coverage.

Understanding your state’s licensing requirements and staying compliant is essential to building a long-lasting, successful career in the insurance industry. Good luck on your exam!

Partner with Ritter for free to gain access to resources that can help you every step of the way in your insurance career!