33.2 Types of Licenses

Insurance licenses are issued for specific lines of authority—the types of insurance a producer is authorized to sell.

Major Lines of Authority

Life Insurance License

Health (Accident and Health) License

Combined Life and Health License

Many states offer a combined Life, Accident, and Health license that authorizes the sale of both life and health products with a single license.

Specialty Licenses

Variable Products License

Selling variable insurance products requires additional licensing:

Exam Tip: Variable products involve investment risk and are considered securities. A producer must hold BOTH an insurance license AND a securities license to sell them.

Long-Term Care Partnership Program

Some states require special certification for producers selling Partnership LTC policies:

Key Takeaways

• Major lines of authority include life, health, property, and casualty.
• Limited lines cover specific products like credit, travel, or crop insurance.
• Surplus lines require separate licensing and place coverage with nonadmitted insurers.
• Temporary licenses may be issued in limited circumstances.
• Nonresident licenses allow producers to sell in other states with reciprocity.
• Appointments authorize a producer to represent a specific insurer.

Standalone Exam Application Drill

This section is part of the rebuilt standalone New Hampshire Life & Health Insurance (State) guide, so do not treat it as background reading. The official outline expects you to use this topic in mixed questions, where a general concept and a state-specific or exam-specific rule may appear in the same fact pattern.

How this topic is tested

A typical question will not ask for a vocabulary definition. It will describe a client, applicant, insured, licensee, consumer, property owner, transaction, policy, claim, disclosure, office practice, or regulator action. First classify the topic under National Life & Health Portion: Chapter 33: Producer Licensing and Conduct. Then decide whether the issue is a product/coverage rule, a licensing or conduct rule, a contract/document rule, a timing rule, or a remedy/penalty rule. That classification keeps you from picking an answer that sounds true but belongs to a different domain.

Review move

When you miss a practice question from this section, write one sentence in this format: “The trigger fact was ___; the rule was ___; the exception or trap was ___; the correct result was ___.” This converts the section into a usable exam checklist rather than a paragraph you merely reread. If the missed question involved a number, deadline, disclosure, form, coverage condition, ownership status, or regulator authority, make that fact a flashcard.

Final self-check

Before moving on, you should be able to explain the section title in plain English, name the main rule without looking, identify one misleading answer choice, and apply the rule to a scenario that changes one fact. If you cannot do those four things, reread the core text and answer the embedded quiz before continuing.

Other License Types

Limited Lines Licenses

Surplus Lines License

Producer vs. Other Roles

Agent vs. Broker

Key Point: The distinction between agent and broker affects who the producer represents and their legal duties. Brokers typically owe a higher fiduciary duty to clients.

Key Takeaways

• Major lines of authority include life, health, property, and casualty.
• Limited lines cover specific products like credit, travel, or crop insurance.
• Surplus lines require separate licensing and place coverage with nonadmitted insurers.
• Temporary licenses may be issued in limited circumstances.
• Nonresident licenses allow producers to sell in other states with reciprocity.
• Appointments authorize a producer to represent a specific insurer.