What is a licensed insurance agent and how to become one

Updated January 8, 2025

4 min read

Quoted expert

Tom Faulconer JD, CPCU, CLU, ChFC, CASL,CFP(r)

Licensed insurance agents are individuals who are authorized by the state to sell insurance policies to individuals and businesses. They are knowledgeable about different types of insurance, such as health, life, auto, and home insurance and help clients choose the right policy based on their needs and budget. They also provide advice on coverage options, and answer questions about claims and policy changes.

What general advice would you give to a licensed insurance agent?

Tom Faulconer JD, CPCU, CLU, ChFC, CASL,CFP(r)

Clinical Professor, Butler University

That depends on the type of agent the person is. Most of us deal with agents who sell personal lines, such as auto and home and life insurance. Their day is filled with prospecting for new clients, appointments to review current insurance with current clients, service work such as adding autos and changing addresses, and, helping take and resolve claims. Some agents specialize in commercial lines. They spend their days prospecting as well, but also work very closely with their clients on a regular basis to assure their insurance program is appropriate. This is because commercial clients usually have very large insurance policies, make frequent changes, and have lots of service work. Plus, the relationship is the key in commercial lines.

ScoreLicensed Insurance AgentUS Average

Salary

4.2

Avg. Salary $54,118

Avg. Salary $59,228

Stability level

6.8

Growth rate 6%

Growth rate 0.3%

Diversity

5.6

Race

American Indian and Alaska Native 0.15%

Asian 4.85%

Black or African American 9.23%

Hispanic or Latino 15.75%

Unknown 3.55%

White 66.47%

Gender

female 61.00%

male 39.00%

Age - 46

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 46

Stress level

6.8

Stress level is high

7.1 - high

Complexity level

8.9

Complexity level is advanced

7 - challenging

Work life balance

6.1

Work life balance is fair

6.4 - fair

What are the pros and cons of being a licensed insurance agent?

Pros

High earning potential with commission-based compensation
Ability to help individuals and businesses protect themselves from financial loss
Opportunity to build relationships with clients and provide valuable guidance
Constant learning opportunities to stay up-to-date on industry trends and regulations
Ability to work independently or as part of a team

Cons

Requires extensive licensing and continuing education requirements
High competition within the industry, making it challenging to establish a client base
Pressure to meet sales quotas and targets
Must stay current on ever-changing industry regulations and policies
Risk of errors or omissions leading to legal liability and damages.

Key steps to become a licensed insurance agent

Explore licensed insurance agent education requirements

Most common licensed insurance agent degrees

Bachelor's

50.0 %

Associate

23.0 %

High School Diploma

13.5 %

Start to develop specific licensed insurance agent skills

Skills	Percentages
Excellent Time Management	17.43%
Work Ethic	16.59%
Strong Customer Service	13.50%
Customer Service	13.27%
Insurance Sales	10.54%

Complete relevant licensed insurance agent training and internships

Accountants spend an average of 6-12 months on post-employment, on-the-job training. New licensed insurance agents learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a licensed insurance agent based on U.S. Bureau of Labor Statistics data and data from real licensed insurance agent resumes.

Obtain the necessary licensing

Becoming a licensed licensed insurance agent usually doesn't require a college degree. However, you need to pass an exam to become a licensed licensed insurance agent in most of states. 38 states require licensed insurance agents to have license for their work. You can see the list of states below.

State	Education	Exam	License url
Alabama	-	-	Licensed Insurance Producer
Arkansas	Degree required	State exam required	Insurance Sales Producer (Agent)
Colorado	Specific course required	State exam required	Insurance Agent
Connecticut	Specific course required	State exam required	Producer License, Individual
Delaware	-	State exam required	Insurance Agent

Gain additional licensed insurance agent certifications

Licensed insurance agent certifications can show employers you have a baseline of knowledge expected for the position. Certifications can also make you a more competitive candidate. Even if employers don't require a specific licensed insurance agent certification, having one may help you stand out relative to other applicants.

The most common certifications for licensed insurance agents include Certified Professional, Life and Health Insurance Program (CPLHI) and Certified Nurse Assistant (CNA).

More About Certifications

Research licensed insurance agent duties and responsibilities

Explain and advice the customers about the insurance needs, handle objections and sale the Allstate company advantage.
Work with people in retirement helping manage their health and life insurance, also help structure their 401k's into annuities.
Used consultative upselling techniques to provide leads
Quote and sell home, mobile home, renters, auto, and motorcycle policies.

Prepare your licensed insurance agent resume

When your background is strong enough, you can start writing your licensed insurance agent resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a licensed insurance agent resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable licensed insurance agent resume templates

Build a professional licensed insurance agent resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your licensed insurance agent resume.

Apply for licensed insurance agent jobs

Now it's time to start searching for a licensed insurance agent job. Consider the tips below for a successful job search:

Browse job boards for relevant postings
Consult your professional network
Reach out to companies you're interested in working for directly
Watch out for job scams

How do licensed insurance agents rate their job?

-/5

5 stars

4 stars

3 stars

2 stars

1 star

Licensed insurance agent reviews

A zippia user wrote a review on Oct 2019

Pros

The diversity of the work flow and the diverse network of people I work with on the daily. From customers,lenders, realtors, inspectors to underwriters and Sales representatives. I enjoy assisting others, problem solving and analyzing the different needs and products available to the client.

Cons

Scripts, depending on who you work for.