What is a licensed insurance producer and how to become one

Updated January 8, 2025

4 min read

Quoted expert

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

A licensed insurance producer sells and services insurance policies either independently or for an insurance company. They receive authorization from state governments to work with clients and match them with policies. A licensed insurance producer must pass a state exam and meet ongoing education requirements. They also have a responsibility to act ethically and in the best interest of their clients. Their role involves assessing risks, explaining policy options, processing claims, and providing ongoing support.

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

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 ProducerUS Average

Salary

5.2

Avg. Salary $66,026

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 4.90%

Black or African American 9.38%

Hispanic or Latino 16.07%

Unknown 3.56%

White 65.95%

Gender

female 60.76%

male 39.24%

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 producer?

Pros

High earning potential
Opportunities for career growth
Chance to build relationships with clients and earn their trust
Potential for bonuses and incentives based on sales performance
Chance to make a positive impact on peopleâ€™s lives

Cons

Highly competitive industry
Commission-based pay structure can be unpredictable
Requires building a solid client base to be successful
Requires dealing with complex regulatory requirements
Limited control over insurance rates and policy terms

Key steps to become a licensed insurance producer

Explore licensed insurance producer education requirements

Most common licensed insurance producer degrees

Bachelor's

57.1 %

Associate

18.8 %

High School Diploma

11.7 %

Start to develop specific licensed insurance producer skills

Skills	Percentages
Work Ethic	50.84%
Lead Generation	13.41%
Annuities	7.63%
Customer Service	5.76%
Insurance Sales	5.64%

Complete relevant licensed insurance producer training and internships

Accountants spend an average of 6-12 months on post-employment, on-the-job training. New licensed insurance producers 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 producer based on U.S. Bureau of Labor Statistics data and data from real licensed insurance producer resumes.

Obtain the necessary licensing

Becoming a licensed licensed insurance producer usually doesn't require a college degree. However, you need to pass an exam to become a licensed licensed insurance producer in most of states. 38 states require licensed insurance producers 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

Research licensed insurance producer duties and responsibilities

Used consultative upselling techniques to provide leads
Present AFLAC benefits packages to various company owners and employees.
Educate customers on products such as property-casualty, life, accident-health, and annuities.
Contact businesses to attempt to establish an AFLAC account as part of their benefits package.

Prepare your licensed insurance producer resume

When your background is strong enough, you can start writing your licensed insurance producer 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 producer 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 producer resume templates

Build a professional licensed insurance producer 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 producer resume.

Apply for licensed insurance producer jobs

Now it's time to start searching for a licensed insurance producer 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 producers rate their job?

-/5

5 stars

4 stars

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1 star

Licensed insurance producer 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.