An Introduction to Producing and Licensing

Producing

A producer is simply a person (an independent agent) who sells insurance. Most independent agents are concerned with production in the Property and Casualty field, but many produce a significant volume of Life and Disability coverages. Sales production is the lifeblood of an independent agency because, in nearly all cases, its compensation comes solely from commissions on business produced. However, training programs are almost always in place to aid the young sales professional

Licensing

All insurance agents are required by the state to be licensed. The type of insurance sold determines the type of license required. For a complete listing of licenses and information about obtaining licenses, visit the Department of Financial Service's (DFS) licensing website.

2-20 License:

Also called a General Lines license, this license allows the holder to transact Marine, Health, Casualty, and Property insurance as well as Surety Bonds. For more information regarding a 2-20 license, please visit the website of the DFS or FAIA's Education Library.

4-40 License:

Also known as a Customer Representative license, this license allows the holder to transact insurance under an agent's supervision. This license can also be useful in obtaining a 2-20 license. For more information regarding a 4-40 license, please visit the website of the DFS or FAIA's Education Library.

Note: Upon successful completion of the FAIA internship program the ACSR designation will be earned. This designation will lead to a 4-40 license for a monetary fee.

Other Designations

Licensed insurance agents can improve their knowledge of the insurance industry by obtaining designations. In the case of the new agent, these designations will be another pillar to stand on while learning the ins and outs of a complicated insurance industry. Examples of designations include Accredited Advisor in Insurance (AAI), Associate in Insurance Production (AIL), and Chartered Property and Casualty Underwriter (CPCU). More information about designations can be found on FAIA's Education Page.