What Is a Life Insurance Counselor License?
In order to sell life insurance in a particular state, life insurance agents are required to be licensed by that state. Although requirements vary by state, a life insurance counselor license is given by a state to a person after he passes exams and completes coursework.
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Licensing
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According to the United States Department of Labor, insurance sales agents must be licensed to sell insurance in the states where they want to work. Different licenses are required for agents to sell life and health insurance, and property and casualty insurance.
Requirements
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In many states, life insurance licenses are issued only to applicants who complete coursework and who pass state life insurance licensing exams. Agents will often have to gain additional instruction from specific companies on the products they sell.
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Title
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A life insurance counselor is another term for a life insurance agent. Some states refer to life insurance agents as "counselors," but the title does not denote any difference from an agent. Agents are licensed to sell life insurance in a given state. Agents are commonly referred to as "producers" inside the life insurance industry.
Ongoing Education Requirements
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Licensed life insurance agents demonstrate knowledge of life insurance laws, technical details of various policies such as permanent, term and universal life insurance, ethics and consumer protection. Many states require agents to complete continuing educational requirements every two years.
Types of Products Sold
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Life insurance counselors, or agents, are licensed to sell permanent, cash value, term and universal life insurance and annuities to consumers. Agents can be captive--selling only one company's products, or, independent--selling products from many different companies.
Regulation
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Each state has an insurance commissioner who, along with his department, regulates the sale of life, health, property and casualty insurance in their states. The departments of insurance throughout the United States are organized into a regulatory body called the National Association of Insurance Commissioners (NAIC) that passes laws regulating the sale of life insurance and consumer protection.
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