What are the legal requirements for selling insurance in the US?

Answer 1

Insurance sales agents need a license in the US states where they plan to sell. Moreover, separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most States, licenses are issued only to applicants who complete specified prelicensing courses and who pass state examinations covering insurance fundamentals and state insurance laws. The U.S. Department of Labor says that states are increasingly moving toward uniform licensing standards and reciprocal licensing, thanks to the Gramm-Leach-Bliley Act of 1999. This would allow agents who earn a license in one state to become licensed in other states upon passing the appropriate courses and examination. Those are the strict licensing requirements. Most insurance sales agents also have some formal education and some voluntary certifications.