Limited Lines Agent

Are you interested in advancing your career in the insurance sector? Obtaining a limited lines agent license is an excellent way to tap into specialized markets and provide tailored insurance solutions.

In this comprehensive Limited Lines Agent guide, we will explore everything you need to know to secure this license, from the necessary qualifications to the specific steps needed to begin.

Whether you are an experienced insurance professional or relatively new to the industry, this guide will equip you with the essential information needed to successfully navigate the limited lines licensing process and boost your career opportunities.

What Is a Limited Lines Agent

A Limited Lines agent is a licensed professional who specializes in selling and servicing specific types of insurance products, known as limited lines of insurance.

Unlike agents licensed for major lines, Limited Lines agents focus on insurance that covers narrowly defined subject matters.

This means that they offer targeted insurance products that address particular risks and needs, rather than the broad and comprehensive coverage provided by major lines.

By focusing on these specific areas, Limited Lines agents aim to serve niche markets and provide specialized solutions that are tailored to their clients’ unique requirements.

Examples of Limited Lines Insurance

Generally speaking, limited lines insurance agents specialize in one of four main categories, as defined by the Uniform Licensing Standards (ULS) of the National Association of Insurance Commissioners (NAIC):

• Car Rental Insurance: This type of insurance agent provides coverage for vehicles rented by customers, which includes collision damage waivers and liability coverage
• Credit Insurance: This type of limited lines agent sells insurance that protects lenders and borrowers in the event that a borrower is unable to meet their debt obligations. It is commonly used in consumer credit transactions and mortgage lending
• Crop Insurance: This type of agent solicits insurance that is designed to protect farmers and agricultural producers against loss of or damage to crops due to natural disasters, pests, or diseases
• Travel Insurance: This type of limited lines agent offers coverage for trip cancellations, medical emergencies, lost luggage, and other travel-related risks

It should be noted that limited line licenses generally have simpler licensing requirements than those required by major lines, which makes it easier for agents to obtain the credentials needed to provide these specialized types of coverage to individuals and businesses.

How to Become a Limited Lines Agent

Now that we’ve covered what a limited lines agent is, we’re going to break down how you can get licensed in three simple steps.

Be aware that this is a general overview of the process, and while the following overarching steps will generally always apply, the specifics of their practical application can vary depending on the state in question.

Step 1: Research Your State Requirements

The first step you will need to take is to research the specific licensing requirements for limited lines agents in your state.

This is important because each state has its own set of rules and regulations, which can be found on your state’s insurance department website or the National Insurance Producer Registry (NIPR) website.

For example, some states require pre-licensing education for limited lines licenses, whereas others do not.

Some states also have a significantly higher number of limited lines licenses that are offered.

Step 2: Pass the Licensing Exam (If Required)

Not all states require a licensing exam for limited lines insurance agents, but certain states do.

If your state requires it, you will need to pass a licensing examination that’s specific to the limited line of insurance you intend to sell. This will generally include questions on both general insurance principles and line-specific content.

For example, on top of general insurance principles, a travel insurance exam might cover topics such as trip interruption, baggage loss, and travel-related medical coverage, while a crop insurance exam might focus on coverage for crop loss due to weather conditions, pests, and diseases.

Note: Be sure to check the specific insurance licensing regulations in your state for detailed information. For a simplified overview, you can refer to our Insurance License Exam guide.

Step 3: Complete a Fingerprint and Background Check

The next step can be completing a fingerprint and/or background check, although this will depend on the limited lines authority in question, as well as on your state.

Most states use Fieldprint or IdentoGo to administer these background checks, but this is not always the case. For example, some states allow prospective applicants to complete the process in person at a local police station.

This step usually involves a small fee, which is generally around $30, although it can be much lower.

Step 4: Submit Your Application

With all other licensing requirements out of the way, the final step you’ll need to complete is to submit an application for the specific limited lines license you are interested in (e.g., crop, credit, travel,).

In the majority of states, you will need to submit your application via the National Insurance Producer Registry (NIPR), although some states also allow submissions through Sircon.

Regardless of the submission method used, there is almost always a filing fee that will need to be paid; this generally hovers anywhere between $100 and $200 depending on the state in question.

The time it takes to process your application varies, but generally takes between a couple of business days and several weeks.