Pennsylvania Insurance Licensing Types

Insurance Regulation and Licensing in Pennsylvania

• The Commonwealth of Pennsylvania issues three basic types of licenses: Insurance Producers, Temporary Licenses, and Managers and Exclusive General Agents.

Insurance Producers

• Insurance Producers are licensed to sell, solicit, and negotiate insurance contracts.
• A person must be licensed as an insurance producer to sell, solicit, or negotiate insurance contracts in Pennsylvania.

Temporary Licenses

• Temporary Licenses are issued to ensure an orderly continuation or disposition of an insurance business during a time of transition.

Managers and Exclusive General Agents

• Managers and Exclusive General Agents are licensed to effect reinsurance agreements and/or manage an insurance business or businesses on behalf of an insurer.

Exemptions from Insurance Producer Licensing

• Insurers are exempt from insurance producer licensing.
• Employees who supervise the training of an insurance producer, inspect, rate, or classify risks are exempt from insurance producer licensing.
• Officers, directors, or employees who do not receive a commission and whose activities are:
  • Executive, administrative, managerial, clerical, and only indirectly related to the sale, solicitation, or negotiation of insurance.
  • Related to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance.
  • Limited to providing technical advice and assistance to licensed insurance producers.
• Other exemptions include:
  • Persons who provide written information for group insurance, perform administrative services, or issue certificates under plans.
  • Persons who perform administrative functions, provide clerical support, or enroll renters on behalf of a rental company.
  • Employers, associations, or trustees of an employee trust plan and their officers, directors, and employees engaged in the administration of an employee benefits program.
  • Persons engaged in the advertising of insurance who do not sell, solicit, or negotiate insurance.
  • Salaried full-time employees who counsel or advise their employer on the employer's insurance issues and neither sell nor solicit insurance nor receive a commission.

Penalties for Violation

• Selling, soliciting, or negotiating insurance contracts without a license is a third-degree felony.