Jane Dotson
Renewing a health and life insurance license is a necessary step to keep the license active and in good standing. The renewal process and requirements vary by state, but some common steps include completing continuing education (CE) hours, paying any applicable fines, and submitting a renewal application and fee. While the specific number of CE hours required varies, it is typically around 20-24 hours every two years. The cost of renewing a license usually ranges from $50 to $100, and some states charge additional processing fees. It is important to renew the license before its expiration date, as failing to do so may result in the license becoming inactive and requiring a new application.
| Characteristics | Values |
|---|---|
| How often to renew | Every two years |
| Continuing Education (CE) requirements | 20-24 hours every two years |
| Cost | $50-$100, plus a $5.60 processing fee |
| Late fee | $25 |
| CE fine | $50 per hour not completed |
| CE fine cap | $500 per license type |
| CE topics | Insurance claims, ethics, client services, tax updates, etc. |
| Renewal application deadline | Before the expiration date |
| Renewal grace period | Up to two years |
What You'll Learn
Continuing Education (CE) requirements
Number of CE Hours:
Most states require insurance license holders to complete a minimum number of CE hours periodically to maintain their licenses. This typically ranges from 20 to 24 hours every two years. For example, in California, licensees in property, casualty, personal lines, life, or health insurance must complete 24 CE hours, while those licensed in limited lines automobile insurance need only 20 hours.
Types of CE Courses:
The types of CE courses required can vary depending on the state and the specific type of insurance license. Common topics include insurance claims, ethics, client services, and tax updates. Some states, like New York, have specific requirements, including instruction in insurance law, ethics and professionalism, diversity and inclusion, and flood insurance.
Timing of CE Completion:
It is crucial to complete your CE requirements before submitting your license renewal application. Most states recommend finishing your CE hours at least 60 days before your planned renewal date to ensure that the completion is documented in the system. This helps avoid unnecessary delays in the renewal process.
Classroom or Online Courses:
CE courses can be offered in various formats, including classroom settings, webinars, self-study with textbooks, or online self-study. The specific requirements may depend on the state and the license type. For example, Texas requires at least 12 hours of "classroom" or "classroom-equivalent" courses within the total CE hours.
CE Exemptions and Extensions:
Some states may offer exemptions or extensions for certain license holders. For instance, Texas provides a 20-year exemption for individuals who have been continuously licensed in the state without interruption. Non-resident licensees in some states may also be exempt from CE requirements if they are compliant in their home state.
CE Fines and Penalties:
Failing to meet CE requirements by the deadline can result in fines. For example, Texas imposes a $50 fine for each hour not completed by the expiration date. These fines must be paid in addition to completing the required CE hours for license renewal.
It is important to note that insurance license renewal processes and CE requirements can vary from state to state. Therefore, it is essential to refer to the specific rules and regulations of your state to ensure compliance with all applicable standards.
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Renewal fees
The cost of renewing a license in most states falls between $50 and $100. Some states divide this into an application fee and an online processing fee. A few states do not charge a renewal fee, while others do not require a renewal application as long as continuing education requirements are met.
Continuing education (CE) requirements must be met to renew a license. Fines may be incurred for each hour of CE not completed before the expiration date. These fines must be paid in addition to completing the CE hours. In Texas, the fine is $50 per hour, with a maximum fine of $500 per license type for licenses that expired after June 1, 2018.
It is important to renew your insurance license before its expiration date to avoid any delays or penalties. Many states allow early renewal, and it is recommended to set a reminder to ensure deadlines are not missed.
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Renewal deadlines
The renewal deadline for your health and life insurance license will depend on the state in which you are licensed. In most states, the renewal deadline is the expiration date of your license, which is often based on your birthday. This date should be printed on the front of your insurance license for reference. You can also check online using your social security number or National Producer Number (NPN).
It's important to note that you must complete any continuing education (CE) requirements and submit your renewal application before this deadline. Many states allow early renewal, with some states permitting renewal up to 180 days early. This can be helpful to avoid missing your renewal deadline due to unforeseen circumstances, such as class cancellations or longer processing times.
If you miss the renewal deadline and your license expires, some states offer a grace period during which you can still renew your license without submitting a new application. For example, in New York, if your license has been inactive for more than two years, you will need to be appointed by a New York-licensed insurance company before you can renew. In California, a late renewal is available, but a 50% penalty fee must be paid, in addition to any other renewal fees and requirements.
To ensure a successful career as an insurance agent, it is crucial to stay on top of renewal deadlines and renew your license ahead of time. Setting reminders and creating periodic goals to complete your CE requirements can help you stay on track.
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Grace periods
If you do not renew your insurance license before its expiration date, some states offer a grace period of up to two years for you to renew your license without submitting a new application. Your license will be inactive starting on its expiration date, which means that you are unable to sell insurance until you renew.
In Texas, if you do not renew your license before its expiration date, you will be fined $25 in addition to the standard renewal fee of $50.
In California, if you do not renew your license before its expiration date, you will be considered "late" and will be required to pay a 50% penalty fee and file new company appointments and/or business entity endorsements or solicitor appointments (if applicable).
In New York, if your status as an agent is currently "inactive" and has been "inactive" for more than two years, a renewal application will not be available until you have been appointed by at least one New York-licensed insurance company.
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Resident vs non-resident licenses
The requirements to renew an insurance license vary by state, but many states follow similar licensing and renewal procedures. In general, insurance licenses are renewed every two years. To renew your insurance license, you must meet your insurance continuing education (CE) requirements and submit your renewal through your state.
A resident license allows an insurance agent to sell, discuss, or make changes to insurance policies in their state of residence. To obtain a resident license, you must take and pass a state insurance license exam, get fingerprinted (if required), and pay the necessary fees. Most states also require you to complete an approved insurance pre-licensing course before taking the exam.
On the other hand, a non-resident license allows an insurance agent to sell, discuss, or make changes to insurance policies in a state where they are not a resident. If you plan to sell or discuss insurance outside your home state, you will need to obtain a non-resident license in that state. The process for obtaining a non-resident license varies from state to state, but typically involves submitting an application, paying the necessary fees, and providing any required documentation such as fingerprints or a background check. Some states may also require you to pass an additional state insurance license exam.
It is important to note that the requirements for maintaining your licenses may differ. For example, you may need to complete continuing education courses and adhere to the laws and regulations of each state where you are licensed. Additionally, each state may have different fees for obtaining and renewing non-resident licenses.
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Frequently asked questions
The expiration date or renewal date is often set for two years, based on the requirement to complete continuing education (CE) hours. You must renew by this date and meet your CE hours.
If your state charges a renewal fee, it is usually between $50 and $100. Some states divide this into an application fee and an online processing fee. A few states don't charge a renewal fee, and a handful don't require a renewal application as long as your CE requirements are met.
Each state sets its own requirements, so you should check with your state. Common topics include insurance claims, ethics, client services, and tax updates. Most states require around 20-24 hours of CE every two years.
First, complete your CE hour requirements. Then, renew your license through your state's authority, such as the Department of Insurance or Department of Financial Services. You will need to provide your license number, National Producer Number, and other personal information.
If your license expires, it will become inactive, and you will be unable to sell insurance. Some states offer a grace period of up to two years to renew your license without submitting a new application.
