Lines of Authority
A line of authority refers to the category of insurance an Insurance Producer sells, solicits or negotiates. These lines are granted by the state’s insurance regulatory agency and determine the scope of practice for the producer. Producers need a license for each line of authority they sell or service.
Insurance agents are often grouped into L&H or P&C—life and health or property and casualty—as these are the most common buckets for general insurance coverage.
Life, accident and health insurance provide preventative care, acute illness coverage and long-term care options for chronic or terminal illnesses. Medical, dental, vision and disability are covered under most health insurance plans. Life insurance provides death benefits or cash value accumulation and estate assets for beneficiaries. This includes term life, whole life, universal life and variable life insurance. Many annuity, estate planning, and retirement products will also fall under this line of authority.
Property and casualty insurance covers your property, home, business and personal belongings. This would be your homeowner’s insurance, renter’s insurance, commercial property insurance or auto policy. Casualty insurance covers the liability for loss or damage caused to others or their property. Casualty would include general liability, workers’ compensation and commercial auto insurance. Umbrella insurance policies will also fall under this line of authority.
There are other categories of insurance including personal lines, surplus lines, credit insurance, cyber risk insurance, crop insurance and title insurance. These products can sometimes fall under both categories or neither. It is the responsibility of every producer to review the regulations in the states where they sell to determine what line of authority they will need for their license.
When it comes to continuing education to renew that license, it’s important to understand what lines of authority you represent and sell to receive the most updated information and education to best serve your clients. Many producers carry multiple lines and need a variety of CE credits to satisfy their carriers. Depending on your state, your continuing education may be limited to content covering the lines of authority you are licensed to sell. InsuranceStudy regularly maintains a list of your CE requirements and lists the course authority approved for every course in our catalog. We are constantly adding new courses at InsuranceStudy to our CE catalog to help you fulfill your CE requirements.
InsuranceStudy has been providing continuing education for Insurance Professionals and Certified Financial Planners for more than 20 years. Our insurance experts are dedicated to bringing you convenient, affordable, and compliant courses. Follow us on Facebook, Instagram or LinkedIn for more updates.
