Who is required to have an insurance license?

Producers, also known as insurance agents or brokers, are required to have an insurance license because they are the individuals who sell insurance policies and provide advice to clients regarding coverage options. Licensing ensures that these professionals are knowledgeable about the various types of insurance products and the regulations governing them, allowing them to competently assist clients in their insurance needs.

In contrast, not all employees of an insurance company engage in activities that require licensing. For instance, positions such as administrative staff or IT personnel may not require a license as they do not deal directly with the sale of insurance products or provide insurance advice. Similarly, while underwriters play a critical role in assessing risks and determining terms for policies, they do not sell insurance directly and thus may not need a license unless they are involved in activities that require client interaction. This distinction highlights why a producer license is specifically mandated for those actively selling insurance.