What is an insurance broker license, and how do you get one?
Insurance brokers are licensed through the same state producer system as agents, but because a broker represents the client rather than an insurer, several states issue a separate broker licence or broker endorsement and attach a bond requirement to it. The core path is the same: choose your lines of authority, complete pre-licensing education, pass the state examination, clear a background check and apply. Placing business with non-admitted insurers requires an additional surplus lines broker licence. Insurance sales agents and brokers earn a $62,280 median.
- Establish whether your state licenses brokers separately or treats them as producers.
- Complete pre-licensing education for your lines of authority.
- Pass the state examination and clear the background check.
- File any broker bond your state requires.
- Add surplus lines authority and non-resident licences as your book demands.
How to get an insurance broker license
- 1
Check how your state treats brokers
Some states issue a distinct broker licence or endorsement with a bond requirement; others make no distinction and permit broking under the ordinary producer licence. This determines whether you have one application to make or two.
- 2
Complete pre-licensing education and pass the exam
Take the approved course for each line of authority and sit the state examination, which covers insurance principles, policy provisions and the state code — including the fiduciary rules on handling client premium funds that matter most to brokers.
- 3
Clear the background check and apply
Submit fingerprints where required, file the application with the state insurance department and pay the fee. Approval usually follows within days of the background check clearing.
- 4
File the broker bond
Where your state requires a bond, obtain it in the amount specified and file it with the department. The bond must stay in force continuously: allowing it to lapse suspends your authority to place business.
- 5
Add surplus lines and non-resident authority
If you will place business with non-admitted insurers, obtain the surplus lines licence and understand its diligent-search, disclosure and premium tax obligations. Add non-resident producer licences for the states your clients operate in, and complete continuing education each cycle.
Insurance Broker license requirements
The producer foundation is the same as for agents, with broker-specific layers on top in some states. You generally need:
Producer licensing
The same foundation as agent licensing: pre-licensing education where required, an examination for each line of authority, fingerprints and a background check, and application to the state insurance department.
Broker licence or endorsement
Several states issue a distinct broker licence or add a broker endorsement to the producer licence, reflecting that the broker acts for the insured. Others make no distinction at all.
Bond
States that license brokers separately commonly require a surety bond, on the basis that a broker handles client premium funds. The amount is set by the state.
Surplus lines licence
A separate authority required to place business with insurers not admitted in the state, usually with its own examination, bond, tax filing and diligent-search obligations.
How much an insurance broker license costs
Costs are modest, with the bond the main difference from agent licensing. The lines to budget for:
Broker licensing costs a little more than agent licensing where a bond is required, and surplus lines brokers carry ongoing tax filing obligations. Fees and bond amounts are set by each state insurance department.
The insurance broker license exam
The examinations are the producer examinations for your lines of authority, covering general insurance principles, the policy types and provisions concerned, and the state insurance code — including the fiduciary rules for handling client premium funds, which carry more weight for brokers than for agents. Where a state licenses brokers separately, the examination usually adds broker duties and disclosure obligations. Surplus lines authority has its own examination in most states, covering the non-admitted market, diligent-search requirements before placing outside admitted carriers, and premium tax filing.
How long it takes to get licensed
Three to eight weeks in most states, with bond filing rather than the examination usually determining the pace.
Insurance Broker license types: the full ladder
What matters here is not seniority but authority: which market you can place business in and on whose behalf.
Unlicensed account support
Administrative and servicing work that stops short of soliciting or negotiating insurance.
Producer licence
The base credential in every state, scoped by line of authority and required before any broking activity.
Broker licence or endorsement
Issued in states that regulate broking separately, recognising that the broker acts for the insured rather than the insurer.
Surplus lines broker licence
Authority to place business with non-admitted insurers, with diligent-search, disclosure and premium tax obligations attached.
Non-resident licences
Issued by other states on the strength of the resident licence, which is how brokers serve multi-state commercial clients.
Agency licence
Most states license the brokerage entity as well as its individual producers, with a designated responsible licensee.
Professional designations
CPCU, CIC and ARM signal technical depth but confer no additional legal authority to place business.
Agent vs Broker: insurance broker license
Insurance Broker license reciprocity between states
Non-resident licensing works for brokers exactly as it does for agents: once you hold a resident licence in good standing, other states generally issue non-resident licences in the same lines without further examination, through the National Insurance Producer Registry. Two broker-specific complications apply. Where a state licenses brokers separately, its broker credential and bond are state-specific and must be obtained there. Surplus lines authority never travels — it is granted per state and carries that state's diligent-search and premium tax obligations. Confirm both before placing business across a state line.
Insurance Brokersalary & job outlook
Insurance sales agents and brokers earn a median of about $62,280 per year ($29.94/hour), with commercial brokers handling large accounts earning substantially more because commission scales with premium. Employment is projected to grow 3.7%, with roughly 47,000 openings a year. See the full insurance broker salary guide for pay by state, city and experience level.
Insurance Broker license requirements by state
The question to answer by state is whether brokers are licensed separately, whether a bond is required, and what surplus lines authority involves.
All states license insurance producers; only some distinguish brokers with a separate licence, endorsement or bond requirement. Surplus lines authority is a separate licence in every state that permits non-admitted placements, with its own tax filing obligations. Confirm the current position with the state insurance department.
Browse all state guides
Insurance Broker license FAQs
National Insurance Producer Registry (NIPR) · National Association of Insurance Commissioners (NAIC) · U.S. Bureau of Labor Statistics, OEWS May 2025 (41-3021) · BLS Occupational Outlook Handbook (Insurance Sales Agents). Requirements and fees are set per state and change, confirm with your state board before applying.
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