As the frequency and severity of cyber attacks progressively increase yearly, cyber insurance has become an increasingly vital component of the modern digital landscape. By 2025, Cybersecurity Ventures predicts cybercrime will cost the world $10.5 trillion annually. Given these staggering numbers, it is unsurprising that more businesses seek cyber insurance protection. However, obtaining the necessary license to sell cyber insurance can be a complicated and perplexing process. This article will examine what license you need to sell cyber insurance and provide a comprehensive guide for those wishing to enter this lucrative and swiftly expanding industry.
What license do you need to sell cyber insurance?
To sell cyber insurance, you typically need to obtain a Property and Casualty (P&C) license in the state where you want to conduct business. Here are some key points about P&C licensing for selling cyber insurance:
- A P&C license is required to sell, solicit, or negotiate policies that provide protection against losses to property and legal liability. This includes cyber insurance policies.
- Licensing requirements can vary by state, but generally involve completing pre-licensing education, passing a state exam, submitting fingerprints for a background check, and applying for the license.
- The pre-licensing education component involves completing 20-40 hours of insurance fundamentals coursework, depending on your state.
- The state licensing exam tests your knowledge of general insurance concepts, state insurance laws, and policy types like cyber insurance. You must pass with a score of 70% or higher in most states.
- Once licensed, you’ll need to take continuing education courses annually to renew the license and stay up to date on insurance regulations.
- Some states may have additional requirements for selling cyber insurance, such as completing approved cybersecurity courses. Check with your state’s department of insurance.
Where to get property and casualty license?
Here are a few tips on how to get a property and casualty insurance license:
- Decide which state you want to be licensed in. Licensing requirements can vary by state, so make sure you follow the specific steps for the state you choose.
- Take an approved pre-licensing education course. Most states require you complete 20-40 hours of pre-license education before taking the licensing exam. Courses are offered by colleges, private exam prep providers, and insurance companies.
- Review your state’s licensing requirements. This includes things like residency, age, application fees, and passing exam scores. Make sure you meet all the criteria before applying.
- Submit your license application and fee to the state insurance department. This is usually done online through the department’s website.
- Pass your state’s licensing exam. The exams cover insurance basics, policy forms, provisions, rating, and regulation. Many states use exams created by Pearson VUE.
- Apply for your license after passing the exam. This involves submitting final paperwork and fees to the state.
- Consider taking additional exams for other lines of authority like life and health insurance. This can make you more marketable.
- Maintain your license with any required continuing education. Most states require around 20 hours of CE courses biennially.
What is a Property & Casualty license required to sell cyber insurance?
The owner of a Property and Casualty (P&C) license may sell or negotiate cyber insurance policies. P&C licenses require state licensure and an exam. Understand your state’s licensing requirements and exam content. The average applicant for Property and Casualty insurance requires 35–40 hours to pass.
Property and casualty insurance protects against property damage and legal liability resulting from injury to people or property. Depending on the coverage, this insurance may cover a variety of events.
Some jurisdictions offer an emergency property and casualty license for general lines for a period of 90 days. In the event that a property and casualty insurance agent dies, retires, or becomes disabled, a person may obtain an emergency license to manage the agency.
A property and casualty license authorizes the holder to sell or negotiate insurance policies that protect individuals and businesses against financial losses resulting from property damage, theft, poor weather, and other covered disasters.
Best online class school for property and casualty agent license
ExamFX is considered one of the best online class schools for a property and casualty agent license. They offer comprehensive study materials, practice tests, and a variety of learning tools. Their content is well thought-out and designed with the student in mind. They offer different bundles with amazing features for less than $350 each, with the lowest tier running around $150. However, the access period can be short if you sign up for the high-tier packages, so it’s important to ensure you have the focus and time commitments necessary to go over all the materials in a timely manner.
Other notable online class schools include CompuCram and Kaplan Financial Education. CompuCram offers a fully compatible platform with mobile devices and tablets, and their courses are generally less than $100. Kaplan Financial Education offers different package bundles to cater to different learning styles and budget levels.
How to obtain Property & Casualty license to sell cyber insurance?
You must adhere to several requirements and procedures to obtain a Property & Casualty (P&C) license. Here are some actions that may be required in the majority of states:
Meet the pre-licensing requirements:
You must be at least 18 years old and complete the state-mandated pre-licensing education for your line of authority. State-specific educational requirements differ in specifics.
Pass the state P&C license exam:
After concluding pre-licensing education, you must pass your state’s insurance licensing exam for your line or lines of authority.
Perform a background check:
Before issuing a P&C license, some states may require you to complete a background check.
Apply for the license:
An application, fee, and proof of pre-licensing schooling and exam passing may be required.
Noting that the exact steps and requirements for obtaining a P&C license can vary by state, it is essential to consult your insurance department for details. The average insurance exam candidate spends 35–40 hours preparing for the P&C exam, so start studying early and set a schedule.
If you’re managing a deceased or incapacitated property and casualty agent’s business, certain jurisdictions provide emergency licenses. Some states don’t require company appointments for agent licenses. A notice of appointment must be submitted electronically within 15 days of the agency contract’s creation.
A P&C license can necessitate several steps and requirements, but state-specific procedures can vary. To ensure a smooth and successful licensing procedure, it is essential to investigate and comprehend your state’s requirements.
What are the requirements for a Casualty license to sell cyber insurance?
The requirements for obtaining a casualty license can differ from state to state. Here are ten prospective requirements you have to meet:
- At least 18 years of age
- Complete state-required pre-licensing education for your line of authority.
- Pass your state’s insurance licensing exam for your line or lines of authority.
- Complete 40 hours of California pre-licensing education
- In Florida, personal lines, life, health, and variable annuity licenses require 60 hours of pre-licensing education.
- Complete 200 hours of pre-licensing education in Florida for general lines (property and casualty) insurance.
- Apply for a license through the state and submit the required paperwork, including an application and test certificate.
- Application fee payment
- Be a United States citizen and possess a high school diploma or GED.
- Complete the continuing education requirements for each primary line of authority in Kentucky, except for a few minor lines of authority.
