1.2 Pennsylvania P&C Producer Licensing Requirements
Key Takeaways
- Anyone who sells, solicits, or negotiates P&C insurance in Pennsylvania must hold a producer license with the appropriate line of authority — property, casualty, or both
- Effective April 29, 2025 (Act 146 of 2024), Pennsylvania eliminated the pre-license education requirement for resident applicants; the licensing exam is still required
- PSI Services administers Pennsylvania insurance exams at testing centers statewide and via remote online proctoring; the passing score is 70%
- Pennsylvania does NOT license staff, independent, or catastrophe adjusters — only public adjusters require a separate license
- Applicants apply electronically through NIPR, must disclose criminal and administrative history, and undergo a background review by the Department
Who Must Be Licensed
Pennsylvania law (40 P.S. § 310.1 et seq.) requires a person to hold a producer license before they sell, solicit, or negotiate insurance in the Commonwealth. These three verbs are defined terms:
- Sell — exchange a contract of insurance for money or its equivalent on behalf of an insurer.
- Solicit — attempt to sell or urge a person to apply for a particular insurance product.
- Negotiate — confer directly with (or offer advice to) a purchaser about the substantive benefits, terms, or conditions of a contract.
If a person does any one of these for P&C insurance, they need a license. A resident producer lives or maintains their principal place of business in Pennsylvania; a nonresident producer is licensed in their home state and obtains a Pennsylvania nonresident license through reciprocity.
Exemptions — Who Does NOT Need a Producer License
The exam tests several exemptions. A license is generally not required for:
| Exempt Role | Reason |
|---|---|
| Officers/employees doing clerical or administrative work | No sell/solicit/negotiate, no commission tied to sales |
| Salaried employees giving general information | Not negotiating specific contract terms for commission |
| Staff, independent, and catastrophe adjusters | Pennsylvania does not issue these adjuster licenses |
| Persons handling group/master-policy enrollment without commission | Administrative function |
Exam Tip: Pennsylvania is unusual — it does not license company (staff), independent, or catastrophe adjusters. Only the public adjuster (who represents the policyholder in a claim) and public adjuster solicitors must be licensed. Don't confuse a public adjuster with a producer.
Lines of Authority
A Pennsylvania producer license is issued by line of authority. For P&C the key lines are:
| Line of Authority | What It Covers |
|---|---|
| Property | Fire, allied lines, homeowners (property portion), commercial property, inland marine |
| Casualty | Liability, auto liability, workers' compensation, surety/bonds |
| Personal Lines | Property and casualty limited to coverage sold to individuals/families (e.g., personal auto, homeowners) |
A full Property & Casualty producer holds both the property and casualty lines. The Personal Lines credential is a narrower authority for those who only handle individual/family business.
Pre-License Education — Eliminated April 29, 2025
Under Act 146 of 2024, effective April 29, 2025, Pennsylvania eliminated the pre-license education requirement for resident applicants. Previously, resident P&C applicants completed 24 hours of approved pre-licensing coursework before testing; that mandate is gone.
| Before April 29, 2025 | After April 29, 2025 |
|---|---|
| 24 hours of pre-license education required (residents) | No pre-license education required |
| Complete coursework, then test | Schedule and sit the exam directly |
| Nonresidents already exempt | Nonresidents still exempt (reciprocity) |
Important: The exam itself is still required. Eliminating coursework lowered the barrier to scheduling, not to passing. Self-study is strongly recommended because the 70% passing score is demanding.
The Licensing Examination (PSI)
Pennsylvania insurance exams are administered by PSI Services LLC. Key facts:
| Exam Detail | Requirement |
|---|---|
| Test vendor | PSI Services LLC (psiexams.com) |
| Delivery | PSI test centers statewide or remote online proctoring at home |
| Format | Computer-based, multiple choice; immediate score report |
| Passing score | 70% |
| Exam structure | A general/national portion + a Pennsylvania state-law portion |
| Retake | Pay a new exam fee and reschedule (a short waiting period applies) |
| Validity of passing result | Apply for the license within 12 months of passing |
The Pennsylvania portion tests the Insurance Department's authority, producer licensing and conduct, P&C state law (e.g., Act 6 auto reform, financial-responsibility limits), and ethics. The general portion tests national property and casualty concepts covered in your national study guide.
Background Review and Fingerprinting
Every applicant must answer background questions truthfully and disclose criminal history and prior administrative actions. The Insurance Department reviews this history before issuing a license.
- The Commissioner has statutory authority to require fingerprints and supporting documents to verify the accuracy of an application.
- Disqualifying conduct centers on crimes of fraud, dishonesty, or breach of trust (which also trigger the federal 1033 waiver process), insurance-law violations, and disciplinary actions in other states.
- Failing to disclose required history is itself a violation and grounds for denial.
Exam Tip: A felony involving dishonesty or breach of trust can bar licensure unless the applicant obtains a federal 1033 written consent (waiver) to work in insurance. This federal overlay applies in every state, including Pennsylvania.
Application Process — Step by Step
- Schedule and pass the PSI exam (70%).
- Apply electronically through NIPR (National Insurance Producer Registry) within 12 months of passing.
- Pay the application/licensing fee (varies by license type).
- Disclose background information; submit fingerprints/documents if requested.
- Department review — typically a few weeks.
- License issued, valid for the producer's biennial cycle (covered in 1.3).
Resident vs. Nonresident
| Resident Producer | Nonresident Producer | |
|---|---|---|
| Eligibility | PA residence or principal office in PA | Licensed and in good standing in home state |
| Pre-license education | None (eliminated 2025) | None (reciprocity) |
| Exam | Required | Waived if equivalently licensed at home |
| Path | PSI exam → NIPR application | NIPR nonresident application (reciprocity under Act 147 of 2002) |
A nonresident who moves to Pennsylvania generally must convert to a resident license within a set period after establishing residency.
Which Pennsylvania licensing change took effect on April 29, 2025?
Which role does Pennsylvania NOT require to hold a license?
What is the passing score on the PSI-administered Pennsylvania Property & Casualty producer exam?