Insurance agents and insurance producers must obtain a license in every state in which they plan to work. Separate licenses may be required for agents to sell life, health, property
and casualty insurance. Some states license business entities and other states only license individual agents and producers. Many states require pre-licensing courses and state
examinations covering insurance fundamentals and state insurance laws. Many state authorities also have mandatory continuing education requirements every 2 years. Application and
insurance license fees range depending on the state but every state requires some type of renewal of the license every 1-3 years.
Common penalties for noncompliance include blocked commissions and large fines ranging from a couple hundred to a couple hundred thousand dollars. A state may also suspend or revoke
a future insurance license. Some states will issue an order of Cease and Desist from engaging in the business of insurance in that state. States may also have the unlicensed
insurance agency or agent pay all valid unpaid claims of their customers.