Thinking about becoming a licensed insurance agent? Or maybe you’re already an agent and simply want to expand your arsenal of insurance products. If either of these describe you, now’s the perfect time to consider getting a property and casualty insurance license!
In this guide we’ll discuss everything you need to know about property and casualty insurance, the importance of proper licensing, and the licensing process, so you’ll be ready for a successful career in the field.
Let’s get started!
What is Property and Casualty Insurance?
Property and casualty insurance also referred to as P&C insurance is a type of umbrella policy protecting against property damage, as well as covering liability for injuries or damage to others. The property aspect of the policy covers physical assets like equipment, vehicles and buildings. The casualty coverage protects clients if someone is hurt physically or suffers some type of reputational damage. When paired together, the two parts form an essential piece of coverage for both individuals and businesses.
As an umbrella policy, property and casualty insurance includes a variety of insurance types including:
- Property Insurance/Commercial Property Insurance
- Liability Insurance
- Auto Insurance
- Homeowners Insurance
- Renters Insurance
- And more
It’s important to note that while the policies can be bundled, they are also generally offered in customizable packages, allowing clients to pick and choose what is necessary for their situation.
What is a Property and Casualty Insurance License?
A property and casualty insurance license gives insurance agents the legal ability to provide insurance products associated with physical property and liability risks. With this license, you’ll be able to offer both personal and business policies. If you’re currently only working with individuals, and want to dip your toes into the realm of commercial insurance, or vice versa, obtaining a P&C insurance license is a great way to make that transition.
Why is a Property and Casualty License Important for Insurance Agents?
Are you considering getting licensed to sell property and casualty insurance, but aren’t completely sure yet? Here are some of the advantages that come with obtaining your P&C license:
- Wide-Range of Products: Once you get your property and casualty insurance license, the list of products you’re able to offer will instantly expand. This includes both personal and business policies such as general liability insurance, homeowners insurance, auto insurance, commercial property and more.
- More Streams of Revenue: Since there are several P&C insurance products and they extend to both individuals and businesses, you’ll have a variety of different ways to earn commission. Not to mention the lucrative cross-selling opportunities.
- Client Retention: By providing a variety of insurance products, you’ll be better equipped to meet the ongoing needs of your clients, increasing the chances of renewals, and referrals.
How to Get a Property and Casualty Insurance License
1. Research State Requirements
Every state has their own licensing process and regulations. Depending on where you live this process may look different from the next state over, so it’ll pay to do your research.
A great place to start is by looking on your state’s Department of Insurance website. Once you’re on the site, look for information about pre-licensing requirements, licensing exams, application fees, and any background check procedures.
2. Complete Pre-Licensing Requirements
In most states it’s a requirement to complete a set number of pre-licensing education hours. There are multiple ways to complete these courses including online platforms, local community colleges and insurance training programs. The courses cover a wide range of topics such as:
- The various types of property and casualty policies.
- State and industry insurance regulations.
- Policy details, provisions and endorsements.
- Claims handling process.
3. Pass the Licensing Test
After completing your pre-licensing education, it’s now time to take and pass the state licensing exam. While the test is slightly different in every state, in most cases the format is multiple choice and the test is timed.
While pre-licensing educational courses tend to do a great job at covering everything you’ll need to know for the exam, we suggest also taking advantage of practice exams that are readily available online, to increase your chances of passing on the first attempt.
4. Submit Your Application
Once you have completed and passed the exam, you’ll need to submit an application to your state’s Department of Insurance. In addition to the application, you’ll also need to submit the following:
- Proof of pre-licensing education.
- Proof of exam results.
- Personal information such as identification.
- Any application fees.
5. Complete a Background Check
In most states you’ll also need to submit a background check as part of the process. If you have any criminal history, it’s important to be upfront and honest about it, as not disclosing it may disqualify or delay your application.
6. Receive Your License and Get Appointed by Carriers
After your application is approved by the state, you’ll finally receive your property and casualty insurance license. Congratulations, you did it! To start selling policies, you’ll now just need to get appointed by at least one insurance carrier and you’ll be on your way.
FAQs
How long will it take to get my license?
It all depends on the state that you’re in. Some individuals have received their license the next day while others have waited a few weeks. In general though, it usually shouldn’t take more than one month to receive your license.
Can I sell other types of insurance with a P&C license?
No, you can’t sell any insurance products beyond policies related to property and casualty insurance. For policies such as life and health insurance, you’ll need to obtain a separate license.
What should I expect on my licensing exam?
The exam will test you on a number of important insurance concepts, coverage types and laws relating to P&C insurance. While the pre-licensing education should cover everything you’ll need to know, be sure to understand the coverages that P&C includes, policy structure, claims handling information and state-specific regulations. Extensive preparation, and the utilization of guides and practice tests are some keys to success!
Final Thoughts
While the process of getting a property and casualty insurance license isn’t always quick, the reward is worth it. With a license you’ll gain access to a number of different policy offerings, creating an abundance of earning opportunities. So if you’re thinking about taking that next step but not exactly sure where to start, we hope this actionable guide provided you with some insight.
If you’re already a licensed insurance agent and looking to get a leg up on the competition, Benepath is here to help! We offer high-intent insurance leads in verticals such as commercial insurance, individual health insurance and group health insurance. Not to mention that every lead we sell is vetted for intent and legitimacy and is delivered to you in real-time! So what are you waiting for? To learn more about what our lead generation services can do for you, just fill out a quick form or call us today at (888)-684-3121.
